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EXTRACTS  FROM  THE  LAWS 


UNITED    STATES 


RELATING    TO 


CURRENCY    AND    FINANCE, 


CAMBRIDGE: 

CHARLES     TV.     SEVER, 

UHIVEESITT  BOOKSTORE. 

1885. 
- 


ejiMsred  according  to  Act  of  Congress,  in  the  year  1875,  by 

CHARLES   W.   SKYER, 

lr  the  Office  of  the  Librarian  of  Congress,  at  Washington. 


UNIVERSITY  PRESS  : 
JOHN  WILSON  &  SON,  CAMBRIDGE. 


PREFATORY  NOTE. 


THIS  compilation  has  been  made  for  the  purpose  of  bringing 
the  recent  legislation  of  the  United  States  on  the  subjects  of 
Currency  and  Finance  within  the  easy  reach  of  students  of  polit- 
ical economy.  The  compiler  has  selected  the  leading  Acts  of 
Congress  which  are  necessary  for  an  understanding  of  our  finan- 
cial history  since  18GO;  and  has  sought,  by  the  omission  of  such 
parts  as  seemed  unimportant  for  the  present  object  and  by 
the  condensation  of  others,  to  bring  into  stronger  relief  the 
provisions  which  determine  the  character  of  the  legislation. 
Presented  thus  in  their  chronological  relation,  the  acts  and 
resolutions  of  Congress  are,  it  is  believed,  the  best  guide  in 
studying  the  grave  economical  questions  which  have  come  up 
in  the  United  States  during  the  last  fourteen  years. 

D. 

HARVARD  COLLEGE,  March,  1875. 


2003165 


LEGISLATION 


CURRENCY   AND   FINANCE. 


I August,  1846.  —  An  Act  to  provide  for  the  letter  Organiza- 
tion of  the  Treasury,  and  for  the  Collection,  Safe-keeping, 
Transfer,  and  Disbursement  of  the  public  Revenue. 

Whereas,  by  the  fourth  section  of  the  act  entitled  "  An  Act  to 
establish  the  Treasury  Department,"  approved  September  two, 
seventeen  hundred  and  eighty-nine,  it  was  provided  that  it  should 
be  the  duty  of  the  Treasurer  to  receive  and  keep  the  moneys 
of  the  United  States,  and  to  disburse  the  same  upon  warrants 
drawn  by  the  Secretary  of  the  Treasury,  countersigned  by 
the  Comptroller,  and  recorded  by  the  Register,  and  not  other- 
wise ;  and  whereas  it  is  found  necessary  to  make  further  pro- 
visions to  enable  the  Treasurer  the  better  to  carry  into  effect 
the  intent  of  the  said  section  in  relation  to  the  receiving  and 
disbursing  the  moneys  of  the  United  States  :  Therefore, 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of 
the  United  States  of  America  in  Congress  assembled,  That  the 
rooms  prepared  and  provided  in  the  new  treasury  building 
at  the  seat  of  government  for  the  use  of  the  Treasurer  of  the 
United  States,  his  assistants  and  clerks,  and  occupied  by  them, 
and  also  the  fire-proof  vaults  and  safes  erected  in  said  rooms  for 
the  keeping  of  the  public  moneys  in  the  possession  and  under  the 
immediate  control  of  said  Treasurer,  and  such  other  apartments 
as  are  provided  for  in  this  act  as  places  of  deposit  of  the  public 
money,  are  hereby  constituted  and  declared  to  be  the  Treasury 


6  INDEPENDENT    TREASURY   ACT.  [1846. 

of  the  United  States.  And  all  moneys  paid  into  the  same  sliall 
be  subject  to  the  draft  of  the  Treasurer,  drawn  agreeably  to 
appropriations  made  by  law. 

[By  sections  2,  3,  and  4,  and  by  subsequent  acts,  the  Mint  at  Phil- 
adelphia, and  the  Branch  Mints,  the  Assay  Office  at  New  York,  the 
offices  of  the  Assistant  Treasurers  at  New  York,  Boston,  Philadelphia, 
Baltimore,  Charleston,  New  Orleans,  Cincinnati,  Chicago,  St.  Louis,  and 
San  Francisco,  and  the  Depositaries  at  Buffalo,  Pittsburgh,  Louisville, 
Galveston,  Santa  Fe,  and  Tucson,  are  made  "  places  of  deposit."] 

SEC.  6.  And  be  it  further  enacted,  That  the  Treasurer  of  the 
United  States,  the  Treasurer  of  the  Mint  of  the  United  States, 
the  treasurers,  and  those  acting  as  such,  of  the  various  branch 
mints,  all  collectors  of  the  customs,  all  surveyors  of  the  customs 
acting  also  as  collectors,  all  assistant  treasurers,  all  receivers  of 
public  moneys  at  the  several  land  offices,  all  postmasters,  and  all 
public  officers  of  whatsoever  character,  be,  and  they  are  hereby, 
required  to  keep  safely,  without  loaning,  using,  depositing  in 
banks,  or  exchanging  for  other  funds  than  as  allowed  by  this 
act,  all  the  public  money  collected  by  them,  or  otherwise  at  any 
time  placed  in  their  possession  and  custody,  till  the  same  is 
ordered,  by  the  proper  department  or  officer  of  the  government, 
to  be  transferred  or  paid  out;  and  when  such  orders  for  transfer 
or  payment  are  received,  faithfully  and  promptly  to  make  the 
same  as  directed.  .  . . 

[Section  9  requires  that  all  collectors  and  receivers  of  public  moneys 
shall  pay  over  the  same,  as  often  as  may  be  directed  by  the  Secretary  of 
the  Treasury  or  the  Postmaster-General,  to  the  Treasurer,  assistant 
treasurer  or  depositary  in  their  respective  cities  ;  and  it  is  made  the  duty 
of  the  Secretary  of  the  Treasury  and  of  the  Postmaster-General  to 
direct  such  payments  to  be  made  as  often  as  once  in  every  week.] 

SEC.  18.  And  be  it  further  enacted,  That  on  the  first  day  of 
January,  in  the  year  one  thousand  eight  hundred  and  forty-seven, 
and  thereafter,  all  duties,  taxes,  sales  of  public  lands,  debts,  and 
sums  of  money  accruing  or  becoming  due  to  the  United  States, 
and  also  all  sums  due,  for  postages  or  otherwise,  to  the  general 
post-office  department,  shall  be  paid  in  gold  and  silver  coin  only, 
or  in  treasury  notes  issued  under  the  authority  of  the  United 
States:  Provided,  That  the  Secretary  of  the  Treasury  shall 


1861.]  NATIONAL    LOAN.  7 

publish,  monthly,  in  two  newspapers  at  the  city  of  Washington, 
the  amount  of  specie  at  the  several  places  of  deposit,  the  amount 
of  treasury  notes  or  drafts  issued,  and  the  amount  outstanding  on 
the  last  day  of  each  month. 

SEC.  19.  And  be  it  further  enacted,  That  on  the  first  day  of 
April,  one  thousand  eight  hundred  and  forty-seven,  and  there- 
after, every  officer  or  agent  engaged  in  making  disbursements  on 
account  of  the  United  States,  or  of  the  general  post-office,  shall 
make  all  payments  in  gold  and  silver  coin,  or  in  treasury  notes, 
if  the  creditor  agree  to  receive  said  notes  in  payment.  .  .  . 

[By  the  Act  of  March  3,  1857,  every  officer  or  agent  having  money  of 
the  United  States  intrusted  to  him  for  disbursement,  is  required  to  de- 
posit the  same  with  the  Treasurer,  or  with  some  Assistant  Treasurer  or 
depositary,  and  to  draw  for  it  only  in  favor  of  the  persons  to  whom  pay- 
ment is  to  be  made ;  but  money  required  for  payment  in  sums  under 
twenty  dollars  can  be  drawn  for  by  such  officer  or  agent  in  his  own  name. 
11  Statutes  at  Large,  249-1 

[Approved,  August  6,  1846.    9  Statutes  at  Large,  59.] 

[L  . . .  July,  1861.  —  An  Act  to  authorize  a  National  Loan,  and 

for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  be 
and  he  is  hereby,  authorized  to  borrow  on  the  credit  of  the 
United  States,  within  twelve  months  from  the  passage  of  this 
act,  a  sum  not  exceeding  two  hundred  and   fifty  millions  of 
dollars,  or  so  much  thereof  as  he  may  deem  necessary  for  the 
public   service,   for   which    he   is   authorized   to   issue   coupon 
bonds,  or  registered  bonds,  or  treasury  notes,  in  such  proper-  7 
tions  of  each  as  he  may  deem  advisable ;   the  bonds  to  bear 
interest  not  exceeding  seven  per  centum  per  annum,  payable 
semi-anuually,  irredeemable  for   twenty  years,  and   after   that 
period  redeemable  at  the  pleasure  of  the  United  States;  and 
the  treasury  notes  to  be  of  any  denomination   fixed  by  the 
Secretary  of  the   Treasury,   not   less   than   fifty  dollars,  andfcfir 
to   be   payable   three  years   after  date,   with   interest   at   the 
rate  of  seven  and  three  tenths  per  centum  per  annum,  payable     . 
semi-annually.      And  the  Secretary  of  the  Treasury  may  also  I   ***$&    \ 
issue  in  exchange  for  coin,  and  as  part  of  the  above  loan,  or  may 
pay  for  salaries  or  other  dues  from  the  United  States,  treasury 


,  if 
r 


DEMAND    NOTES.  [1861. 

yw 

notes  of  a  less  denomination  than  fifty  dollars,  not  bearing  inter- 
est, but  payable  on  demand  by  the  Assistant  Treasurers  of  the 
United  States  at  Philadelphia,  New  York,  or  Boston,  or  treas- 
ury notes  bearing  interest  at  the  rate  of  three  and  sixty-five 
hundredths  per  centum,  payable  in  one  year  from  date,  and  ex- 
changeable at  any  time  for  treasury  notes  for  fifty  dollars,  and 
upwards,  issuable  under  the  authority  of  this  act,  and  bearing 
interest  as  specified  above  :  Provided,  That  no  exchange  of  such 
notes  in  any  less  amount  than  one  hundred  dollars  shall  be  made 
at  any  one  time :  And  provided  further,  That  no  treasury  notes 
shall  be  issued  of  a  less  denomination  than  ten  dollars,  and  that 
whole  amount  of  treasury  notes,  not  bearing  interest,  issued 
under  the  authority  of  this  act,  shall  not  exceed  fifty  millions  of 
dollars. 

[Section  3  authorizes  the  Secretary  of  the  Treasury  to  open  books  for 
subscriptions  for  the  treasury  notes,  at  such  places  as  he  may  select ;  and, 
if  he  thinks  expedient,  before  opening  such  books,  to  pay  out  for  public 
dues,  or  for  coin,  or  for  the  public  debt,  any  amount  of  said  treasury 

tes  not  exceeding  one  hundred  millions  of  dollars. 

Section  4  provides  for  the  issue  of  proposals  in  the  United  States  for 
such  portion  of  the  loan  in  bonds  as  the  Secretary  may  determine,  "  Pro- 
ided,  That  no  offer  shall  be  accepted  at  less  than  par." 

Section  5  authorizes  the  Secretary  of  the  Treasury  to  negotiate  any 
part  of  the  loan,  not  exceeding  one  hundred  millions  of  dollars,  in  any 
foreign  country;  to  make  the  principal  and  interest  payable  either  in 
the  United  States  or  in  Europe ;  and  to  fix  the  rate  of  exchange  at  which 
ijl  the  principal  shall  be  received,  which  rate  shall  also  be  the  rate  of  ex- 
S  .  .^^  change  for  the  payment  of  the  principal  and  interest  in  Europe.] 

SEC.  6.  And  be  it  further  enacted,  That  whenever  any  treas- 
ury notes  of  a  denomination  less  than  fifty  dollars,  authorized  to 
be  issued  by  this  act,  shall  have  been  redeemed,  the  Secretary 
of  the  Treasury  may  reissue  the  same,  or  may  cancel  them  and 
issue  new  notes  to  an  equal  amount :  Provided,  That  the  aggre- 
gate amounts  of  bonds  and  treasury  notes  issued  under  the 
foregoing  provisions  of  this  act  shall  never  exceed  the  full 
amount  authorized  by  the  first  section  of  this  act ;  and  the  power 
to  issue  or  reissue  such  notes  shall  cease  and  determine  after  the 
thirty-first  of  December,  eighteen  hundred  and  sixty-two. 

SEC.  7.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  is  hereby  authorized,  whenever  he  shall  deem  it  expe- 


1861.] 


DEPOSIT   OF   PUBLIC   MONEYS. 


dient,  to  issue  in  exchange  for  coin,  or  in  payment  for  public 
dues,  treasury  notes  of  any  of  the  denominations  hereinbefore 
specified,  bearing  interest  not  exceeding  six  per  centum  per  annum, 
and  payable  at  any  time  not  exceeding  twelve  months  from  date, 
provided  that  the  amount  of  notes  so  issued,  or  paid,  shall  at  no 
time  exceed  twenty  millions  of  dollars. 

[Approved,  July  17, 1861.    12  Statutes  at  Large,  259.] 

in August,  1861.  —  An  Act  supplementary  to  an  Act  entitled 

"  An  Act  to  authorize  a  National  Loan,  and  for  other  Par- 
poses" 

[Section  1  authorizes  the  Secretary  of  the  Treasury  to  issue  bonds 
bearing  interest  at  six  per  cent,  per  annum,  and  payable  at  the  pleasure 
of  the  United  States  after  twenty  years  from  date,  to  be  given  in  ex-  I  ' 
change  for  such  treasury  notes,  bearing  interest  at  seven  and  three-tenths  ' 
per  cent.,  issued  under  the  act  of  July  17, 1861,  as  the  holders  may  present 
for  exchange  before  or  at  the  maturity  thereof.     Any  part  of  the  treasury 
notes  payable  on  demand,  authorized  by  said  act,  may  be  made  payable 
by  the  Assistant  Treasurer  at  St.  Louis,  or  the  depositary  at  Cincinnati.]   [ 

SEC.  3.  And  be  it  further  enacted,  That  so  much  of  the  act 
to  which  this  is  supplementary  as  limits  the  denomination  of  a 
portion  of  the  treasury  notes  authorized  by  said  act  at  not  less'* 
than  ten  dollars,  be  and  is  so  modified  as  to  authorize  the  Sec- 
retary of  the  Treasury  to  fix  the  denomination  of  said  notes  at 
not  less  than  five  dollars. 

SEC.  5.     And  be  it  further  enacted,  That  the  treasury  notes  I 
authorized  by  the  act  to  which  this  is  supplementary,  of  a  less 
denomination  than  fifty  dollars,  payable  on  demand  without  in- 
terest, and  not  exceeding  in  amount  the  sum  of  fifty  millions  of 
dollars,  shall  be  receivable  in  payment  of  public  dues. 

SEC.  6.  And  be  it  further  enacted,  That  the  provisions  of  the 
act  entitled  "  An  act  to  provide  for  the  better  organization  of 
the  Treasury,  and  for  the  collection,  safe-keeping,  transfer, 
and  disbursements  of  the  public  revenue,"  passed  August  six, 
eighteen  hundred  and  forty-six,  be  and  the  same  are  hereby 
suspended,  so  far  as  to  allow  the  Secretary  of  the  Treasury  to 
deposit  any  of  the  moneys  obtained  on  any  of  the  loans  now 
authorized  by  law,  to  the  credit  of  the  Treasurer  of  the  United 
States,  in  such  solvent  specie-paying  banks  as  he  may  select; 


10  FIRST   LEGAL    TENDER   ACT.  [1862. 

and  the  said  moneys,  so  deposited,  may  be  withdrawn  from  such 
deposit  for  deposit  with  the  regular  authorized  depositaries,  or 
for  the  payment  of  public  dues,  or  paid  in  redemption  of  the 
notes  authorized  to  be  issued  under  this  act,  or  the  act  to  which 
this  is  supplementary,  payable  on  demand,  as  may  seem  expedient 
to,  or  be  directed  by,  the  Secretary  of  the  Treasury. 

SEC.  7.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may  sell  or  negotiate,  for  any  portion  of  the  loan  pro- 
vided for  in  the  act  to  which  this  is  supplementary,  bonds  pay- 
able not  more  than  twenty  years  from  date,  and  bearing  interest 
not  exceeding  six  per  centum  per  annum,  payable  semi-annually, 
at  any  rate  not  less  than  the  equivalent  of  par,  for  .he  bonds 
bearing  seven  per  centum  interest,  authorized  by  said  act. 

[Approved,  August  5,  1861.    12  Statutes  at  Large,  313.] 

IV. ...  February,  1862. — An  Act  to  authorize   an   additional 
Issue  of  United  States  Notes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury,  in 
addition  to  the  fifty  millions  of  notes  payable  on  demand  of  de- 
nominations not  less  than  five  dollars,  heretofore  authorized  by 
the  acts  of  July  seventeenth  and  August  fifth,  eighteen  hundred 
and  sixty-one,  be,  and  he  is  hereby,  authorized  to  issue  like 
notes,  and  for  like  purposes,  to  the  amount  of  ten  millions  of 
dollars,  and  said  notes  shall  be  deemed  part  of  the  loan  of  two 
hundred  and  fifty  millions  of  dollars  authorized  by  said  acts. 

[Approved,  February  12,  1862.    12  Statutes  at  Large,  338.] 

V. . . ,  February,  1862.  —  An  Act  to  authorize  the  Issue  of  United 
States  Notes,  and  for  the  Redemption  or  Funding  thereof, 
and  for  Funding  the  Floating  Debt  of  the  United  States. 

Be  it  enacted^  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  to  issue,  on  the  credit  of  the  United  States,  one 
hundred  and  fifty  millions  of  dollars  of  United  States  notes,  not 
bearing  interest,  payable  to  bearer,  at  the  Treasury  of  the  United 
States,  and  of  such  denominations  as  he  may  deem  expedient, 
not  less  than  five  dollars  each:  Provided,  however,  That  fifty 
millions  of  said  notes  shall  be  in  lieu  of  the  demand  treasury 


1862.]  FIRST   ISSUE    OF   FIVE-TWENTIES.  11 

notes  authorized  to  be  issued  by  the  act  of  July  seventeen,  eigh- 
teen hundred  and  sixty-one ;  which  said  demand  notes  shall  be 
taken  up  as  rapidly  as  practicable,  and  the  notes  herein  provided 
for  substituted  for  them :  And  provided  further ;  That  the  amount 
of  the  two  kinds  of  notes  together  shall  at  no  time  exceed  the 
sum  of  one  hundred  and  fifty  millions  of  dollars,  and  such  notes 
herein  authorized  shall  be  receivable  in  payment  of  all  taxes,  |  fj  k  j  \  *W\      ' 
internal  duties,  excises,  debts,  and  demands  of  every  kind  due  to 
the  United  States,  except  duties  on  imports,  and  of  all  claims  and      AvA$- ' 
demands  against  the  United  States  of  every  kind  whatsoever,  j  .        .  /  » 

except  for  interest  upon  bonds  and  notes,  which  shall  be  paid  in  '  hjUNjW  ^"f 
coin,  and  shall  also  be  lawful  money  and  a  legal  tender  in  pay-    i  ^         /  ^-— 

ment  of  all  debts,  public  and  private,  within  the  United  States,      rT  ' 

except  duties  on  imports  and  interest  as  aforesaid.  And  any 
holders  of  said  United  States  notes  depositing  any  sum  not  less 
than  fifty  dollars,  or  some  multiple  of  fifty  dollars,  with  the 
Treasurer  of  the  United  States,  or  either  of  the  Assistant  Treas- 
urers, shall  receive  in  exchange  therefor  duplicate  certificates  of 
deposit,  one  of  which  may  be  transmitted  to  the  Secretary  of  the 
Treasury,  who  shall  thereupon  issue  to  the  holder  an  equal 
amount  of  bonds  of  the  United  States,  coupon  or  registered,  as 
may  by  said  holder  be  desired,  bearing  interest  at  the  rate  of  six 
per  centum  per  annum,  payable  semi-annually,  and  redeemable 
at  the  pleasure  of  the  United  States  after  five  years,  and  payable 
twenty  years  from  the  date  thereof.  And  such  United  States 
notes  shall  be  received  the  same  as  coin,  at  their  par  value,  in 
payment  for  any  loans  that  may  be  hereafter  sold  or  negotiated 
by  the  Secretary  of  the  Treasury,  and  may  be  re-issued  from  time 
to  time  as  the  exigencies  of  the  public  interests  shall  require. 

Sue.  2.  And  be  it  further  enacted,  That  to  enable  the  Sec- 
retary of  the  Treasury  to  fund  the  treasury  notes  and  floating 
debt  of  the  United  States,  he  is  hereby  authorized  to  issue,  on 
the  credit  of  the  United  States,  coupon  bonds,  or  registered  bonds, 
to  an  amount  not  exceeding  five  hundred  millions  of  dollars, 
redeemable  at  the  pleasure  of  the  United  States  after  five  years, 
and  payable  twenty  years  from  date,  and  bearing  interest  at  the 
rate  of  six  per  centum  per  annum,  payable  semi-annually.  And 
the  bonds  herein  authorized  shall  be  of  such  denominations,  not 


12 


TEMPORARY   DEPOSITS  :     SINKING   FUND. 


[1862. 


less  than  fifty  dollars,  as  may  be  determined  upon  by  the  Secre- 
tary of  the  Treasury.  And  the  Secretary  of  the  Treasury  may 
dispose  of  such  bonds  at  any  time,  at  the  market  value  thereof, 
for  the  coin  of  the  United  States,  or  for  any  of  the  treasury  notes 
that  have  been  or  may  hereafter  be  issued  under  any  former  act 
of  Congress,  or  for  United  States  notes  that,  may  be  issued  under 
the  provisions  of  this  act ;  and  all  stocks,  bonds,  and  other  secu- 
rities of  the  United  States  held  by  individuals,  corporations,  or 
associations,  within  the  United  States,  shall  be  exempt  from 
taxation  by  or  under  State  authority. 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may  receive  from  any  person  or  persons,  or  any  corpo- 
ration, United  States  notes  on  deposit  for  not  less  than  thirty 
days,  in  sums  of  not  less  than  one  hundred  dollars,  with  any  of 
the  Assistant  Treasurers  or  designated  depositaries  of  the  United 
States  authorized  by  the  Secretary  of  the  Treasury  to  receive 
them,  who  shall  issue  therefor  certificates  of  deposit,  made  in 
such  form  as  the  Secretary  of  the  Treasury  shall  prescribe,  and 
said  certificates  of  deposit  shall  bear  interest  at  tb<3  rate  of  five 
per  centum  per  annum ;  and  any  amount  of  United  States  notes 
so  deposited  may  be  withdrawn  from  deposit  at  any  time  after 
ten  days'  notice  on  the  return  of  said  certificates:  Provided, 
That  the  interest  on  all  such  deposits  shall  cease  and  determine 
at  the  pleasure  of  the  Secretary  of  the  Treasury  :  And  provided 
further,  That  the  aggregate  of  such  deposit  shall  at  no  time 
xceed  the  amount  of  twenty-five  millions  of  dollars. 

SEC.  5.  And  be  it  further  enacted,  That  all  duties  on  im- 
*  flj*i  ported  goods  shall  be  paid  in  coin,  or  in  notes  payable  on 
Iff  demand  heretofore  authorized  to  be  issued  and  by  law  receivable 

in  payment  of  public  dues,  and  the  coin  so  paid  shall  be  set  apart 
as  a  special  fund,  and  shall  be  applied  as  follows : 

First.  To  the  payment  in  com  of  the  interest  on  the  bonds 
<md  notes  of  the  United  States. 

l^*Second.  To  the  purchase  or  payment  of  one  per  centum  of 
the  entire  debt  of  the  United  States,  to  be  made  within  each 
fiscal  year  after  the  first  day  of  July,  eighteen  hundred  and  sixty- 
two,  which  is  to  be  set  apart  as  a  sinking  fund,  and  the  interest 
of  which  shall  in  like  manner  be  applied  to  the  purchase  or  pay 


1862.]  CERTIFICATKS    OF   INDEBTEDNESS.  13 

tneiit  of  the  public  debt  as  the  Secretary  of  the  Treasury  shall 
from  time  to  tune  direct. 

Third.  The  residue  thereof  to  be  paid  into  the  Treasury  of  the 
United  States. 

[Approved,  February  25,  1862.    12  Statutes  at  Large,  345.J 

VL  . . .  March,  1862.  —  An  Act  to  authorize  the  Secretary  of  the 
Treasury  to  issue  Certificates  of  Indebtedness  to  Public 
Creditors. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
be,  and  he  is  hereby  authorized,  to  cause  to  be  issued  to  any 
public  creditor  who  may  be  desirous  to  receive  the  same,  upon 
requisition  of  the  head  of  the  proper  department  in  satisfaction 
of  audited  and  settled  demands  against  the  United  States,  cer- 
tificates for  the  whole  amount  due  or  parts  thereof  not  less  than 
one  thousand  dollars,  signed  by  the  Treasurer  of  the  United 
States,  and  countersigned  as  may  be  directed  by  the  Secretary 
of  the  Treasury  ;  which  certificates  shall  be  payable  in  one  year 
from  date  or  earlier,  at  the  option  of  the  Government,  and  shall 
bear  interest  at  the  rate  of  six  per  centum  per  annum. 

[Approved,  March  1,  1862.    12  Statutes  at  Large,  352.] 

VIL  . . .  March,  1862.  —  An  Act  to  authorize  the  Purchase  of 

Coin,  and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
may  purchase  coin  with  any  of  the  bonds  or  notes  of  the  United 
States,  authorized  by  law,  at  such  rates  and  upon  such  terms  as 
he  may  deem  most  advantageous  to  the  public  interest ;  and  may 
issue,  under  such  rules  and  regulations  as  he  may  prescribe,  cer- 
tificates of  indebtedness,  such  as  are  authorized  by  an  act  en- 
titled "  An  act  to  authorize  the  Secretary  of  the  Treasury  to 
issue  certificates  of  indebtedness  to  public  creditors,"  approved 
March  first,  eighteen  hundred  and  sixty-two,  to  such  creuitors  as 
may  desire  to  receive  the  same,  in  discharge  of  checks  drawn  by 
disbursing  officers  upon  sums  placed  to  their  credit  on  the  books 
of  the  Treasurer,  upon  requisitions  of  the  proper  departments, 
as  well  as  in  discharge  of  audited  and  settled  accounts,  as  pro- 
vided by  said  act. 


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V)          | 


14  SECOND    LEGAL    TENDER   ACT.  [1862. 

SEC.  2.  And  be  it  further  enacted,  That  the  demand-notes 
authorized  by  the  act  of  July  seventeenth,  eighteen  hundred  and 
sixty-one,  and  by  the  act  of  February  twelfth,  eighteen  hundred 
and  sixty-two,  shall,  in  addition  to  being  receivable  hi  payment 
of  duties  on  imports,  be  receivable,  and  shall  be  lawful  money 
and  a  legal  tender,  in  like  manner,  and  for  the  same  purposes, 
and  to  the  same  extent,  as  the  notes  authorized  by  an  act  en- 
titled "  An  act  to  authorize  the  issue  of  United  States  notes, 
and  for  the  redemption  or  funding  thereof,  and  for  funding  the 
floating  debt  of  the  United  States,"  approved  February  twenty- 
fifth,  eighteen  hundred  and  sixty-two. 

SEC.  3.  And  be  it  further  enacted,  That  the  limitation  upon 
temporary  deposits  of  United  States  notes  with  any  Assistant 
Treasurers  or  designated  depositaries,  authorized  by  the  Secre- 
tary of  the  Treasury  to  receive  such  deposits,  at  five  per  cent. 
interest,  to  twenty-five  millions  of  dollars,  shall  be  so  far  modi- 
fied as  to  authorize  the  Secretary  of  the  Treasury  to  receive 
such  deposits  to  an  amount  not  exceeding  fifty  millions  of  dollars, 
and  that  the  rates  of  interest  shall  be  prescribed  by  the  Secre- 
tary of  the  Treasury  not  exceeding  the  annual  rate  of  five  per 
centum. 

[Approved,  March  17,  1862.     12  Statutes  at  Large,  370.] 

VILL  .  .  .  July,  1862.  —  An  Act  to  authorize  an  additional  Issue 
of  United  States  Notes,  and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
is  hereby  authorized  to  issue,  in  addition  to  the  amounts  hereto- 
f°re  authorized,  on  the  credit  of  the  United  States,  one  hundred 
an(^  ^^  m^i°ns  °f  Collars  of  United  States  notes,  not  bearing 
interest,  payable  to  bearer  at  the  Treasury  of  the  United  States, 
an^  °f  such  denominations  as  he  may  deem  expedient  :  Provided, 
That  no  note  shall  be  issued  for  the  fractional  part  of  a  dollar, 
and  not  more  than  thirty-five  millions  shall  be  of  lower  denom- 
inations  than  five  dollars;  and  such  notes  shall  be  receivable 
in  payment  of  all  loans  made  to  the  United  States,  and  of  all 
taxes,  internal  duties,  excises,  debts,  and  demands  of  every  kind 
due  to  the  United  States,  except  duties  on  imports  and  interest, 


1862.]  INCREASE    OF   TEMPORARY   DEPOSITS.  15 

and  of  all  claims  and  demands  against  the  United  States,  except 
for  interest  upon  bonds,  notes,  and  certificates  of  debt  or  deposit ; 
and  shall  also  be  lawful  money  and  a  legal  tender  in  payment  of 
all  debts,  public  and  private,  within  the  United  States,  except 
duties  on  imports  and  interest,  as  aforesaid.  And  any  holder  of 
said  United  States  notes  depositing  any  sum  not  less  than  fifty 
dollars,  or  some  multiple  of  fifty  dollars,  with  the  Treasurer  of 
the  United  States,  or  either  of  the  assistant  treasurers,  shall  re- 
ceive in  exchange  therefor  duplicate  certificates  of  deposit,  one 
of  which  may  be  transmitted  to  the  Secretary  of  the  Treasury, 
who  shall  thereupon  issue  to  the  holder  an  equal  amount  of  bonds 
of  the  United  States,  coupon  or  registered,  as  may  by  said  holder 
be  desired,  bearing  interest  at  the  rate  of  six  per  centum  per  an- 
num, payable  send-annually,  and  redeemable  at  the  pleasure  of 
the  United  States  after  five  years,  and  payable  twenty  years 
from  the  date  thereof:  Provided,  however,  That  any  notes  issued 
under  this  act  may  be  paid  in  coin,  instead  of  being  received  in 
exchange  for  certificates  of  deposit  as  above  specified,  at  the  j~-  jtf" 
direction  of  the  Secretary  of  the  Treasury.  And  the  Secretary  $P^ 
of  the  Treasury  may  exchange  for  such  notes,  on  such  terms  as  ' 
he  shall  think  most  beneficial  to  the  public  interest,  any  bonds  of  /  • 
the  United  States  bearing  six  per  centum  interest,  and  redeem- 
able after  five  and  payable  in  twenty  years,  which  have  been  or 
may  be  lawfully  issued  under  the  provisions  of  any  existing  act ; 
may  reissue  the  notes  so  received  In  exchange ;  may  receive 
and  cancel  any  notes  heretofore  lawfully  issued  under  any  act  of 
Congress,  and  in  lieu  thereof  issue  an  equal  amount  hi  notes 
such  as  are  authorized  by  this  act ;  and  may  purchase,  at  rates 
not  exceeding  that  of  the  current  market,  and  cost  of  purchase  not 
exceeding  one-eighth  of  one  per  centum,  any  bonds  or  certifi- 
cates of  debt  of  the  United  States  as  he  may  deem  advisable. 

SEC.  3.  And  be  it  further  enacted,  That  the  limitation  upon 
temporary  deposits  of  United  States  notes  with  any  Assistant 
Treasurer  or  designated  depositary  authorized  by  the  Secretary 
of  the  Treasury  to  receive  such  deposits,  to  fifty  millions  of  dol- 
lars be,  and  is  hereby,  repealed ;  and  the  Secretary  of  the  Treas- 
ury is  authorized  to  receive  such  deposits,  under  such  regulations 
as  he  may  prescribe,  to  such  amount  as  he  may  deem  expedient, 


POSTAGE  CURRENCY.  [1862. 

not  exceeding  one  hundred  millions  of  dollars,  for  not  less  than 
days,  in  sums  not  less  than  one  hundred  dollars,  at  a  rate 
of  interest  not  exceeding  five  per  centum  per  annum ;  and  any 
amount  so  deposited  may  be  withdrawn  from  deposit,  at  any  time 
after  ten  days'  notice,  on  the  return  of  the  certificate  of  deposit. 
And  of  the  amount  of  United  States  notes  authorized  by  this  act, 
not  less  than  fifty  millions  of  dollars  shall  be  reserved  for  the 
purpose  of  securing  prompt  payment  of  such  deposits  when  de- 
manded, and  shall  be  issued  and  used  only  when,  hi  the  judgment 
of  the  Secretary  of  the  Treasury,  the  same  or  any  part  thereof 
may  be  needed  for  that  purpose.  And  certificates  of  deposit 
and  of  indebtedness  issued  under  this  or  former  acts  may  be  re- 
ceived on  the  same  terms  as  United  States  notes  in  payment  for 
bonds  redeemable  after  five  and  payable  in  twenty  years. 
v  SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may,  at  any  time  until  otherwise  ordered  by  Congress, 
and  under  the  restrictions  imposed  by  the  "  Act  to  authorize  a 
national  loan,  and  for  other  purposes,"  borrow,  on  the  credit  of 
the  United  States,  such  part  of  the  sum  of  two  hundred  and 
fifty  millions  mentioned  in  said  act  as  may  not  have  been  bor- 
rowed, under  the  provisions  of  the  same,  within  twelve  months 
from  the  passage  thereof. 

SEC.  6.  And  be  it  further  enacted,  That  all  the  provisions  of 
the  act  entitled  "  An  act  to  authorize  the  issue  of  United  States 
notes,  and  for  the  redemption  or  funding  thereof,  and  for  funding 
the  floating  debt  of  the  United  States,"  approved  February 
twenty-five,  eighteen  hundred  and  sixty-two,  so  far  as  the  same 
can  or  may  be  applied  to  the  provisions  of  this  act,  and  not  in- 
consistent therewith,  shall  apply  to  the  notes  hereby  authorized 
to  be  issued. 

[Approved,  July  11, 1862.    12  Statutes  at  Large,  p.  532.] 

IX. . . .  July,  1862.  —  An  Act  to  authorize  Payments  in  Stamps, 
and  to  prohibit  Circulation  of  Notes  of  less  Denomination 
than  One  Dollar. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
be,  and  he  is  hereby  directed  to  furnish  to  the  Assistant  Treas- 
urers, and  such  designated  depositaries  of  the  United  States  as 


18C2.]          LEGAL  TENDER  RESOLUTION. 


:; , ' 


may  be  by  him  selected,  in  such  sums  as  he  may  deem  expedient, 
the  postage  and  other  stamps  of  the  United  States,  to  be  ex- 
changed by  them,  on  application,  for  United  States  notes ;  and 
from  ami  after  the  first  day  of  August  next  such  stamps  shall  be 
receivable  in  payment  of  all  dues  to  the  United  States  less  than 
five  dollars,  and  shall  be  received  in  exchange  for  United  States 
notes  when  presented  to  any  Assistant  Treasurer  or  any  desig- 
nated depositary  selected  as  aforesaid  in  sums  not  less  than  five 
dollars. 

SEC.  2.  And  be  it  further  enacted,  That  from  and  after  the 
first  day  of  August,  eighteen  hundred  and  sixty-two,  no  private 
corporation,  banking  association,  firm,  or  individual  shall  make, 
issue,  circulate,  or  pay  any  note,  check,  memorandum,  token,  or 
other  obligation,  for  a  less  sum  than  one  dollar,  intended  to  cir- 
culate as  money  or  to  be  received  or  used  in  lieu  of  lawful 
money  of  the  United  States.  .  .  . 

[Approved,  July  17,  18G2.     12  Statutes  at  Large,  692.] 

X January,  1863.  —  Joint  Resolution  to  provide  for  the  im- 
mediate Payment  of  the  Army  and  Navy  of  the  United 
States. 

"Whereas  it  is  deemed  expedient  to  make  immediate  provision  for 
the  payment  of  the  army  and  navy  :  therefore, 

Be  it  resolved,   .   .   .   That  the  Secretary  of  the  Treasury  be,     . 
and  he  is  hereby,  authorized,  if  required  by  the  exigencies  of   IJJ/tk 
the  public  service,  to  issue  on  the  credit  of  the  United  States-    •  ^»  j 

the  sum  of  one  hundred  millions  of  dollars  of  United  States  t^  OWfJ  *Y 
notes,  in  such  form  as  he  may  deem  expedient,  not  bearing  in- 
terest, payable  to  bearer  on  demand,  and  of  such  denomina- 
tions not  less  than  one  dollar,  as  he  may  prescribe,  which  notes 
so  issued  shall  be  lawful  money  and  a  legal  tender,  like  the 
similar  notes  heretofore  authorized  in  payment  of  all  debts, 
public  and  private,  within  the  United  States,  except  for  duties  on 
imports  and  interest  on  the  public  debt ;  and  the  notes  so  issued 
shall  be  part  of  the  amount  provided  for  in  any  bill  now  pending 
for  the  issue  of  treasury  notes,  or  that  may  be  passed  hereafter 
by  this  Congress. 

[Approved,  January  17,  1863.    12  Statutes  at  Large,  p.  822.] 


18     NATIONAL  BANKS.      NINE  HUNDRED  MILLION  LOAN.   [1863. 


XI February,  1863.  —  An  Act  to  provide  a  National  Cur- 
rency, secured  by  a  Pledge  of  United  States  Stocks,  and  to 
provide  for  the  Circulation  and  Redemption  thereof. 

[This  act  was  repealed  and  superseded  by  the  act  of  soiilar  title  ap- 
proved June  3,  1864.  For  the  principal  points  of  difference  between  the 
two  acts,  see  the  note  on  p.  34.] 

[Approved,  February  25,  1863.     12  Statutes  at  Large,  665.] 

XII March,  1863.  —  An  Act  to  provide  Ways  and  Means  for 

the  Support  of  the  Government. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
be,  and  he  is  hereby,  authorized  to  borrow,  from  time  to  time,  on 
the  credit  of  the  United  States,  a  sum  not  exceeding  three 
hundred  millions  of  dollars  for  the  current  fiscal  year,  and  six 
hundred  millions  for  the  next  fiscal  year,  and  to  issue  therefor 
coupon  or  registered  bonds,  payable  at  the  pleasure  of  the  gov- 
ernment after  such  periods  as  may  be  fixed  by  the  Secretary, 
not  less  than  ten  nor  more  than  forty  years  from  date,  in  coin, 
and  of  such  denominations  not  less  than  fifty  dollars,  as  he  may 
deem  expedient,  bearing  interest  at  a  rate  not  exceeding  six  per 
centum  per  annum,  payable  on  bonds  not  exceeding  one  hundred 
dollars,  annually,  and  on  all  other  bonds  semi-annually,  in  coin ; 
and  he  may  in  his  discretion  dispose  of  such  bonds  at  any  time, 
upon  such  terms  as  he  may  deem  most  advisable,  for  lawful 
money  of  the  United  States,  or  for  any  of  the  certificates  of  in- 
debtedness or  deposit  that  may  at  any  time  be  unpaid,  or  for  any 
of  the  treasury  notes  heretofore  issued  or  which  may  be  issued 
under  the  provisions  of  this  act.  And  all  the  bonds  and  treas- 
ury notes  or  United  States  notes  issued  under  the  provisions  ol 
this  act  shall  be  exempt  from  taxation  by  or  under  State  or  mu- 
nicipal authority :  Provided,  That  there  shall  be  outstanding  oi 
bonds,  treasury  notes,  and  United  States  notes,  at  any  time, 
issued  under  the  provisions  of  this  act,  no  greater  amount  alto- 
gether than  the  sum  of  nine  hundred  millions  of  dollars. 

SEC.  2.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  be,  and  he  is  hereby,  authorized  to  issue,  on  the  credil 
of  the  United  States,  four  hundred  millions  of  dollars  in  treas- 
ury notes,  payable  at  the  pleasure  of  the  United  States,  or  at 


1863.]  THIRD    LEGAL    TENDER   ACT. 

such  time  or  times  not  exceeding  three  years  from  date,  as  may 
be  found  most  beneficial  to  the  public  interest,  and  bearing  in- 
terest  at  a  rate  not  exceeding  six  per  centum  per  annum,  payable 
at  periods  expressed  on  the  face  of  said  treasury  notes ;  and  the 
interest  on  the  said  treasury  notes  and  on  certificates  of  indebt- 
edness and  deposit  herenfter  issued,  shall  be  paid  in  lawful  money. 
The  treasury  notes  thus  issued  shall  be  of  such  denomination  .  . 

as  the  Secretary  may  direct,  not  less  than  ten  dollars,  and  may  /M**  I  0  • 
be  disposed  of  on  the  best  terms  that  can  be  obtained,  or  may    mtjj^  Tfajbu^  tMv 
be  paid  to  any  creditor  of  the  United  States  willing  to  receive       >L  "*  'y 

the  same  at  par.  And  said  treasury  notes  may  be  made  a  legal  / «  *- 
tender  to  the  same  extent  as  United  States  notes,  for  their  face  f* 
value  excluding  interest ;  or  they  may  be  made  exchangeable 
under  regulations  prescribed  by  the  Secretary  of  the  Treasury, 
by  the  holder  thereof,  at  the  Treasury  in  the  city  of  Washington, 
or  at  the  office  of  any  Assistant  Treasurer  or  depositary  designated 
for  that  purpose,  for  United  States  notes  equal  in  amount  to  the 
treasury  notes  offered  for  exchange,  together  with  the  interest 
accrued  and  due  thereon  at  the  date  of  interest  payment  next 
preceding  such  exchange.  And  in  lieu  of  any  amount  of  said 
treasury  notes  thus  exchanged,  or  redeemed  or  paid  at  maturity, 
the  Secretary  may  issue  an  equal  amount  of  other  treasury 
notes  ;  and  the  treasury  notes  so  exchanged,  redeemed,  or  paid, 
shall  be  cancelled  and  destroyed  as  the  Secretary  may  direct. 
In  order  to  secure  certain  and  prompt  exchanges  of  United 
States  notes  for  treasury  notes,  when  required  as  above  pro- 
vided, the  Secretary  shall  have  power  to  issue  United  States 
notes  to  the  amount  of  one  hundred  and  fifty  millions  of  dollars, 
which  may  be  used  if  necessary  for  such  exchanges;  but  no 
part  of  the  United  States  notes  authorized  by  this  section  shall 
be  issued  for  or  applied  to  any  other  purposes  than  said  ex- 
changes ;  and  whenever  any  amount  shall  have  been  so  issued 
and  applied,  the  same  shall  be  replaced  as  soon  as  practicable 
from  the  sales  of  treasury  notes  for  United  States  notes. 

SEC.  3.  And  be  it  farther  enacted,  That  the  Secretary  of  the 
Treasury  be,  and  he  is  hereby,  authorized,  if  required  by  the  ex- 
igencies of  the  public  service,  for  the  payment  of  the  army  and 
navy,  and  other  creditors  of  the  government,  to  issue  ou  the 


A 

II  t, 


20  FRACTIONAL    CURRENCY.  [1863. 

M      y      credit  of  the  United  States  the  sum  of  one  hundred  and  fifty 
._j.  i*  IjJW*      millions  of  dollars  of  United  States  notes,  including  the  amount  of 
I  <^  '  such  notes  heretofore  authorized  by  the  joint  resolution  approved 

January  seventeen,  eighteen  hundred  and  sixty  -three,  in  such 
form  as  he  may  deem  expedient,  not  bearing  interest,  payable  to 
jearer.  and  of  such  denominations,  not  less  than  one  dollar,  as 
he  may  prescribe,  which  notes  so  issued  shall  be  lawful  money 
and  a  legal  tender  in  payment  of  all  debts,  public  and  private, 
*  within  the  United  States,  except  for  duties  on  imports  and  in- 
terest on  the  public  debt;  and  any  of  the  said  notes,  when  re- 
turned to  the  Treasury,  may  be  re-issued  from  time  to  time  as 
the  exigencies  of  the  public  service  may  require.  And  in  lieu 
of  any  of  said  notes,  or  any  other  United  States  notes,  returned 
to  the  Treasury,  and  cancelled  or  destroyed,  there  may  be  issued 
equal  amounts  of  United  States  notes,  such  as  are  authorized 
by  this  act.  And  so  much  of  the  act  to  authorize  the  issue  of 
United  States  notes,  and  for  other  purposes,  approved  Feb- 
ruary twenty-five,  eighteen  hundred  and  sixty-two,  and  of  the 
act  to  authorize  an  additional  issue  of  United  States  notes,  and 
for  other  purposes,  approved  July  eleven,  eighteen  hundred  and 
sixty-two,  as  restricts  the  negotiation  of  bonds  to  market  value, 
is  hereby  repealed.  And  the  holders  of  United  States  notes, 
issued  under  and  by  virtue  of  said  acts,  shall  present  the  same 
for  the  purpose  of  exchanging  the  same  for  bonds,  as  therein  pro- 
vided, on  or  before  the  first  day  of  July,  eighteen  hundred  and 
sixty-three,  and  thereafter  the  right  so  to  exchange  the  same 
shall  cease  and  determine. 

SEC.  4.  And  be  it  further  enacted,  That  in  lieu  of  postage  and 
revenue  stamps  for  fractional  currency,  and  of  fractional  notes, 
commonly  called  postage  currency,  issued  or  to  be  issued,  the 
^Secretary  of  the  Treasury  may  issue  fractional  notes  of  like 
/'^^'amounts  in  such  form  as  he  may  deem  expedient,  and  may  pro- 
vide  for  the  engraving,  preparation  and  issue  thereof,  in  the 
Treasury  Department  building.  And  all  such  notes  issued  shall 
ke  exchangeable  by  the  Assistant  Treasurers  and  designated  de- 
positaries  for  United  States  notes,  in  sums  not  less  than  three 
dollars,  and  shall  be  receivable  for  postage  and  revenue  stamps, 
and  also  in  payment  of  any  dues  to  the  United  States  less  than 


1863.] 


TEMPORARY  DEPOSITS  OP  GOLD. 


five  dollars,  except  duties  on  imports,  and  shall  be  redeemed  on 
presentation  at  the  Treasury  of  the  United  States  in  such  sums 
and  under  such  regulations  as  the  Secretary  of  the  Treasury 
shall  prescribe :  Provided,  That  the  whole  amount  of  fractional 
currency  issued,  including  postage  and  revenue  stamps  issued  as 
currency,  shall  not  exceed  fifty  millions  of  dollars. 

SEC.  5.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  is  hereby  authorized  to  receive  deposits  of  gold  coin 
and  bullion  with  the  Treasurer  or  any  Assistant  Treasurer  of  the 
United  States,  in  sums  not  less  than  twenty  dollars,  and  to  issue 
certificates  therefor,  in  denominations  of  not  less  than  twenty 
dollars  each,  corresponding  with  the  denominations  of  the  United 
States  notes.  The  coin  and  bullion  deposited  for  or  representing 
the  certificates  of  deposit  shall  be  retained  in  the  Treasury  for 
the  payment  of  the  same  on  demand.  And  certificates  repre- 
senting coin  in  the  Treasury  may  be  issued  in  payment  of  in- 
terest on  the  public  debt,  which  certificates,  together  with  those 
issued  for  coin  and  bullion  deposited,  shall  not  at  any  time  ex- 
ceed twenty  per  centum  beyond  the  amount  of  coin  and  bullion 
in  the  Treasury ;  and  the  certificates  for  coin  or  bullion  in  the 
Treasury  shall  be  received  at  par  in  payment  for  duties  on 
imports. 

[Section  7,  after  providing  for  taxes  to  be  laid  upon  the  circulation  of 
all  banks  and  corporations,  whether  established  under  state  laws  or  under 
the  act  of  February  25,  18G3,  directs  that  all  banks,  corporations,  or  in- 
dividuals issuing  notes  for  any  fractional  part  of  a  dollar  after  April  1, 
1863,  shall  be  taxed  ten  per  cent,  per  annum  upon  the  amount  of  such 
fractional  notes.] 

[Approved,  March  3,  1863.     12  Statutes  at  Large,  709.] 

XIII March,  1864.  —  An  Act  supplementary  to  an  Act  entitled 

"  An  Act  to  provide  Ways  and  Means  for  the  Support  of  the 
Government"  approved  March  third,  eighteen  hundred  and 
sixty-lhree. 

[Section  1  provides  that  in  lieu  of  so  much  of  the  loan  authorized 
by  the  Act  of  March  3,  1803,  the  Secretary  of  the  Treasury  may  issue 
not  exceeding  two  hundred  millions  of  dollars  of  coupon  or  registered 
bonds,  redeemable  not  less  than  five  years  and  payable  not  more  than 
forty  years  from  date  in  coin,  with  the  same  provisions  as  to  denom'na- 
tion,  interest,  method  of  disposal,  and  exemption  from  taxation  as  in 
section  1  of  the  Act  of  March  3,  1863. 


22  BANK  ACT:  THE  COMPTROLLER.  [1864 

Section  2  authorizes  the  Secretary  of  the  Treasury  to  issue  bonds 
under  the  Act  of  February  25,  1862,  in  excess  of  five  hundred  millions  of 
dollars,  to  the  amount  of  eleven  millions,  to  such  persons  as  subscribed 
for  them  on  or  before  January  21,  1864,  and  have  paid  for  them.] 

[Approved,  March  3,  1864.    13  Statutes  at  Large,  13  J 

XIV March,  1864.  — Joint  Resolution  to  authorize  the  Secre- 
tary of  the  Treasury  to  anticipate  the  Payment  of  Interest 
on  the  Public  Debt,  and  for  other  Purposes. 
Be  it  resolved,  .  .  .  That  the  Secretary  of  the  Treasury  be 
authorized  to  anticipate  the  payment  of  interest  on  the  public 
debt,  by  a  period  not  exceeding  one  year,  from  time  to  time, 
either  with  or  without  a  rebate  of  interest  upon  the  coupons,  as 
to  him  may  seem  expedient ;  and  he  is  hereby  authorized  to  dis- 
pose of  any  gold  in  the  Treasury  of  the  United  States  not  nec- 
essary for  the  payment  of  interest  of  the  public  debt :  Provided, 
That  the  obligation  to  create  the  sinking  fund  according  to  the 
Act  of  February  twenty-fifth,  eighteen  hundred  and  sixty-two, 
shall  not  be  impaired  thereby. 

[Approved,  March  17,  1864.     13  Statutes  at  Large,  404.] 

XV. . . .  June,  1864.  —  An  Act  to  provide  a  National  Currency, 
secured  by  a  Pledge  of  United  States  Bonds,  and  to  provide 
for  the  Circulation  and  Redemption  thereof. 

Be  it  enacted,  .  .  .  That  there  shall  be  established  in  the 
Treasury  Department  a  separate  bureau,  which  shall  be  charged 
with  the  execution  of  this  and  all  other  laws  that  may  be  passed 
by  Congress  respecting  the  issue  and  regulation  of  a  national 
currency  secured  by  United  States  bonds.  The  chief  officer  of 
the  said  bureau  shall  be  denominated  the  Comptroller  of  the 
Currency,  and  shall  be  under  the  general  direction  of  the  Secre- 
tary of  the  Treasury.  He  shall  be  appointed  by  the  President, 
on  the  recommendation  of  the  Secretary  of  the  Treasury,  by 
and  with  the  advice  and  consent  of  the  Senate,  and  shall  hold 
his  office  for  the  term  of  five  years  unless  sooner  removed  by 
the  President,  upon  reasons  to  be  communicated  by  him  to  the 
Senate ;  he  shall  receive  an  annual  salary  of  five  thousand 
dollars.  .  .  . 

[He  shall  give  a  bond  in  the  penalty  of  $100,000  for  the  faithful  dis- 
charge of  his  duties ;  shall  have  a  competent  deputy,  who  shall  give  a 


18C4.]  BANK  ACT:  CAPITAL.  23 

like  bond  for  $50,000;  and  neither  the  Comptroller  nor  the  Deputy- 
Comptroller  shall  "  be  interested "  in  any  association  issuing  currency 
under  the  provisions  of  this  act. 

Section  5  provides  that  an  association  for  carrying  on  the  business  ol 
banking  may  be  formed  by  any  number  of  persons  not  less  than  five, 
who  shall  enter  into  articles  stating  the  object  of  the  association  and 
containing  provisions  for  regulating  its  business  not  inconsistent  with 
this  act.  A  copy  of  these  articles  must  be  forwarded  to  the  Comptroller, 
together  with  a  certificate  of  organization,  specifying  the  name  of  the 
association,  which  shall  be  subject  to  the  approval  of  the  Comptroller, 
the  place  where  it  is  located,  the  amount  of  its  capital,  and  the  names 
and  residences  of  its  stockholders.  But  the  association  shall  not  begin 
the  business  of  banking  until  it  is  authorized  by  the  Comptroller.  It 
shall  be  a  body- corporate  from  the  date  of  its  organization-certificate, 
and  shall  continue  for  twenty  years  unless  sooner  dissolved  under  the 
provisions  of  this  act,  and  shall  have  all  such  incidental  powers  as  are 
necessary  to  carry  on  the  business  of  banking,  by  discounting,  receiving 
deposits,  lending  money  on  personal  security,  buying  and  selling  ex- 
change, coin  and  bullion,  and  issuing  and  circulating  notes  under  the 
provisions  of  this  act.] 

SEC.  7.  And  be  it  further  enacted,  That  no  association  shall 
be  organized  under  this  act,  with  a  less  capital  than  one  hundred 
thousand  dollars,  nor  in  a  city  whose  population  exceeds  fifty 
thousand  persons,  with  a  less  capital  than  two  hundred  thousand 
dollars :  Provided,  That  banks  with  a  capital  of  not  less  than 
fifty  thousand  dollars  may,  with  the  approval  of  the  Secretary 
of  the  Treasury,  be  organized  in  any  place  the  population  of 
which  does  not  exceed  six  thousand  inhabitants. 

[Every  association  is  to  be  managed  by  not  less  than  five  directors, 
one  of  whom  shall  be  its  president;  every  director  must  own  at  least  ten 
shares  of  the  capital  stock  in  his  own  right  and  in  no  way  pledged  for 
any  debt ;  all  elections  of  directors,  after  the  first,  are  to  be  held  an- 
nually in  the  month  of  January  ;  every  shareholder  is  to  have  one  vote 
for  every  share  of  the  stock  owned  by  him ;  but  no  shareholder  whose 
liability  is  past  due  and  unpaid  is  to  be  allowed  to  vote.] 

SEC.  12.  And  be  it  further  enacted,  That  the  capital  stock  of 
any  association  formed  under  this  act  shall  be  divided  into  shares 
of  one  hundred  dollars  each,  and  be  deemed  personal  property 
and  transferable  on  the  books  of  the  association  in  such  manner 
as  may  be  prescribed  in  the  by-laws  or  articles  of  association. 
.  .  .  The  shareholders  of  each  association  formed  under  the  pro- 
visions of  this  act,  and  of  each  existing  bank  or  banking  asso- 


24  BANK  ACT:  DEPOSIT  OF  BONDS.  [1864. 

elation  that  may  accept  the  provisions  of  this  act,  shall  be  held 
individually  responsible,  equally  and  ratably,  and  not  one  for 
another,  for  all  contracts,  debts,  and  engagements  of  such  asso- 
ciation to  the  extent  of  the  amount  of  their  stock  therein  at  the 
par  value  thereof,  in  addition  to  the  amount  invested  in  such 
shares.  .  .  . 

[But  shareholders  of  any  banking  association  now  existing  under 
State  laws,  having  not  less  than  five  millions  of  capital  and  a  surplus  of 
twenty  per  cent,  on  hand,  shall  be  liable  only  to  the  amount  invested  in 
their  shares  ;  but  said  surplus  shall  be  in  addition  to  that  elsewhere  re- 
quired by  this  act,  and  shall  be  kept  undiminished. 

Section  13  provides  that  any  association  may  increase  its  capital  or 
may  diminish  the  same,  subject  to  the  approval  of  the  Comptroller.] 

SEC.  14.  And  be  it  further  enacted,  That  at  least  fifty  per 
centum  of  the  capital  stock  of  every  association  shall  be  paid  in 
before  it  shall  be  authorized  to  commence  business  ;  and  the  re- 
mainder of  the  capital  stock  of  such  association  shall  be  paid  in 
instalments  of  at  least  ten  per  centum  each  on  the  whole  amount 
of  the  capital  as  frequently  as  one  instalment  at  the  end  of  each 
succeeding  month  from  the  time  it  shall  be  authorized  by  the 
Comptroller  to  commence  business ;  and  the  payment  of  each 
instalment  shall  be  certified  to  the  Comptroller,  under  oath,  by 
the  president  or  cashier  of  the  association. 

SEC.  16.  And  be  it  further  enacted,  That  every  association, 
after  having  complied  with  the  provisions  of  this  act,  preliminary 
to  the  commencement  of  banking  business  under  its  provisions, 
and  before  it  shall  be  authorized  to  commence  business,  shall  trans- 
fer and  deliver  to  the  Treasurer  of  the  United  States  any  United 
States  registered  bonds  bearing  interest  to  an  amount  not  less 
than  thirty  thousand  dollars  nor  less  than  one  third  of  the  capital 
stock  paid  in,  which  bonds  shall  be  deposited  with  the  Treasurer 
of  the  United  States  and  by  him  safely  kept  in  his  office  until  the 
same  shall  be  otherwise  disposed  of,  in  pursuance  of  the  provi- 
sions of  this  act.  .  .  .  And  the  deposit  of  bonds  shall  be,  by  every 
association,  increased  as  its  capital  may  be  paid  up  or  increased,  so 
that  every  association  shall  at  all  times  have  on  deposit  with  the 
Treasurer  registered  United  States  bonds  to  the  amount  of  at 
least  one  third  of  its  capital  stock  actually  paid  in :  Provided, 


1864.]  BANK  ACT:   CIRCULATING  NOTES.  25 

That  nothing  in  this  section  shall  prevent  an  association  that 
may  desire  to  reduce  its  capital  or  to  close  up  its  business  and 
dissolve  its  organization  from  taking  up  its  bonds  upon  returning 
to  the  Comptroller  its  circulating  notes  in  the  proportion  here- 
inafter named  in  this  act,  nor  from  taking  up  any  excess  of 
bonds  beyond  one  third  of  its  capital  stock  and  upon  which  no 
circulating  notes  have  been  delivered. 

SEC.  21.  And  be  it  further  enacted,  That  upon  the  transfer 
and  delivery  of  bonds  to  the  Treasurer,  as  provided  in  the  fore- 
going section,  the  association  making  the  same  shall  be  entitled 
to  receive  from  the  Comptroller  of  the  Currency  circulating 
notes  of  different  denominations,  in  blank,  registered  and  coun- 
tersigned as  hereinafter  provided,  equal  in  amount  to  ninety  per 
centum  of  the  current  market  value  of  the  United  States  bonds 
so  transferred  and  delivered,  but  not  exceeding  ninety  per  cen- 
tum of  the  amount  of  said  bonds  at  the  par  value  thereof,  if 
bearing  interest  at  a  rate  not  less  than  five  per  centum  per  an- 
num ;  and  at  no  time  shall  the  total  amount  of  such  notes,  issued 
to  any  such  association,  exceed  the  amount  at  such  time  actually 
paid  in  of  its  capital  stock. 

SEC.  22.  And  be  it  further  enacted,  That  the  entire  amount 
of  notes  for  circulation  to  be  issued  under  this  act  shall  not  ex- 
ceed three  hundred  millions  of  dollars.  In  order  to  furnish 
suitable  notes  for  circulation,  the  Comptroller  of  the  Currency 
is  hereby  authorized  and  required,  under  the  direction  of  the 
Secretary  of  the  Treasury,  to  cause  plates  and  dies  to  be  en- 
graved, in  the  best  manner  to  guard  against  counterfeiting  and 
fraudulent  alterations,  and  to  have  printed  therefrom,  and  num- 
bered, such  quantity  of  circulating  notes,  in  blank,  of  the  denom- 
inations of  one  dollar,  two  dollars,  three  dollars,  five  dollars, 
ten  dollars,  twenty  dollars,  fifty  dollars,  one  hundred  dollars,  five 
hundred  dollars,  and  one  thousand  dollars,  as  may  be  required 
to  supply,  under  this  act,  the  associations  entitled  to  receive  the 
same  ;  which  notes  shall  express  upon  their  face  that  they  are 
secured  by  United  States  bonds,  deposited  with  the  Treasurer 
of  the  United  States  by  the  written  or  engraved  signatures  of 
the  Treasurer  and  Register,  and  by  the  imprint  of  the  seal  of 
the  Treasury  ;  and  shall  also  express  upon  their  face  the  prom- 


26  BANK  ACT:  NOTES  TO  BE  RECEIVABLE.        [1864. 

ise  of  the  association  receiving  the  same  to  pay  on  demand,  at- 
tested by  the  signatures  of  the  pi'esident  or  vice-president  aud 
cashier.  And  the  said  notes  shall  bear  such  devices  and  such 
other  statements,  and  shall  be  in  such  form,  as  the  Secretary 
of  the  Treasury  shall,  by  regulation,  direct :  Provided,  That 
not  more  than  one-sixth  part  of  the  notes  furnished  to  an  asso- 
ciation shall  be  of  a  less  denomination  than  five  dollars,  and 
that  after  specie  payments  shall  be  resumed  no  association 
shall  be  furnished  with  notes  of  a  less  denomination  than  five 
dollars. 

SEC.  23.  And  be  it  further  enacted,  That  after  any  such  as- 
sociation shall  have  caused  its  promise  to  pay  such  notes  on  de- 
mand to  be  signed  by  the  president  or  vice-president  and  cashier 
thereof,  in  such  manner  as  to  make  them  obligatory  promissory 
notes,  payable  on  demand,  at  its  place  of  business,  such  associa- 
tion is  hereby  authorized  to  issue  and  circulate  the  same  as 
money  ;  and  the  same  shall  be  received  at  par  in  all  parts  of  the 
United  States  in  payment  of  taxes,  excises,  public  lands,  and  all 
other  dues  to  the  United  States,  except  for  duties  on  imports ; 
and  also  for  all  salaries  and  other  debts  and  demands  owing  by 
the  United  States  to  individuals,  corporations,  and  associations 
within  the  United  States,  except  interest  on  the  public  debt,  and 
in  redemption  of  the  national  currency.  And  no  such  associa- 
tion shall  issue  post  notes  or  any  other  notes  to  circulate  as 
money  than  such  as  are  authorized  by  the  foregoing  provisions 
of  this  act. 

[Section  24  provides  that  the  Comptroller  shall  receive  the  worn-out 
or  mutilated  notes  of  any  association,  and  shall  deliver  to  it  fresh  notes 
in  place  thereof,  and  that  the  worn-out  or  mutilated  notes  shall  be  burned 
in  presence  of  four  persons,  appointed  by  the  Secretary  of  the  Treasury, 
the  Comptroller,  the  Treasurer  of  the  United  States  and  the  association, 
respectively.] 

SEC.  26.  And  be  it  further  enacted,  That  the  bonds  transferred 
to  and  deposited  with  the  Treasurer  of  the  United  States,  as 
hereinbefore  provided,  by  any  banking  association  for  the  secu- 
rity of  its  circulating  notes,  shall  be  held  exclusively  for  that 
purpose,  until  such  notes  shall  be  redeemed,  except  as  provided 
in  this  act ;  but  the  Comptroller  of  the  Currency  shall  give  to 


1864.]  BANK  ACT:   RATE  OF  INTEREST.  27 

any  such  banking  association  powers  of  attorney  to  receive  and 
appropriate  to  its  own  use  the  interest  on  the  bonds  which  it 
shall  have  so  transferred  to  the  Treasurer ;  but  such  powers 
shall  become  inoperative  whenever  such  banking  association  shall 
fail  to  redeem  its  circulating  notes  as  aforesaid.  Whenever 
the  market  or  cash  value  of  any  bonds  deposited  with  the  Treas- 
urer of  the  United  States,  as  aforesaid,  shall  be  reduced  below 
the  amount  of  the  circulation  issued  for  the  same,  the  Comp- 
troller of  the  Currency  is  hereby  authorized  to  demand  and  re- 
ceive the  amount  of  such  depreciation  in  other  United  States 
bonds  at  cash  value,  or  in  money,  from  the  association  receiving 
said  bills,  to  be  deposited  with  the  Treasurer  of  the  United 
States  as  long  as  such  depreciation  continues. 

[And  the  Comptroller  may  permit  the  exchange  of  any  of  the  bonds 
so  deposited  for  other  bonds  of  the  United  States,  or  the  return  of  any 
of  them  upon  the  surrender  and  cancellation  of  a  proportionate  amount 
of  the  circulating  notes  ;  prodded,  the  remaining  bonds  are  sufficient  for 
the  requirements  of  this  act,  and  the  association  has  not  failed  to  redeem 
its  circulating  notes. 

Section  28  forbids  any  association  to  hold  real  estate,  except  such  as 
may  be  necessary  for  its  accommodation  in  its  business,  or  may  be  mort- 
gaged to  it  as  security  for  debts  previously  contracted,  or  conveyed  to  it 
in  satisfaction  thereof,  or  may  be  purchased  by  it  in  order  to  secure  debts 
due  to  it;  or  to  hold  possession  under  a  mortgage,  or  to  retain  real 
estate  purchased  to  secure  debts,  for  more  than  five  years.] 

SEC.  29.  And  be  it  further  enacted,  That  the  total  liabilities 
to  any  association,  of  any  person,  or  of  any  company,  corpora- 
tion, or  firm  for  money  borrowed,  including  in  the  liabilities  of  a 
company  or  firm  the  liabilities  of  the  several  members  thereof, 
shall  at  no  time  exceed  one  tenth  part  of  the  amount  of  the 
capital  stock  of  such  association  actually  paid  in:  Provided, 
that  the  discount  of  bond  Jide  bills  of  exchange  drawn  against 
actually  existing  values,  and  the  discount  of  commercial  or 
business  paper  actually  owned  by  the  person  or  persons,  cor- 
poration, or  firm  negotiating  the  same  shall  not  be  considered  as 
money  borrowed. 

[Section  30  authorizes  every  association  to  charge  upon  loans  or  dis- 
counts made  by  it  the  rate  of  interest  which  the  law  of  the  State  where 
it  is  established  allows  banks,  organized  under  State  laws,  to  charge; 
and,  where  no  rate  is  fixed  bv  the  law  of  the  State,  to  charge  a  rate  not 


28  BANK  ACT:  BESEBVES.  [1864 

exceeding  seven  per  cent.  But  the  purchase  or  sale  of  a  bonafide  bill  of 
exchange,  payable  at  another  place,  at  not  more  than  the  current  rate  of 
exchange  in  addition  to  the  interest,  shall  not  be  considered  as  taking  a 
greater  rate  of  interest.] 

SEC.  31.  And  be  it  further  enacfed,  That  every  association  in 
the  cities  hereinafter  named  shall,  at  all  times,  have  on  hand,  in 
lawful  money  of  the  United  States,  an  amount  equal  to  at  least 
twenty-five  per  centum  of  the  aggregate  amount  of  its  notes  in 
circulation  and  its  deposits  ;  and  every  other  association  shall, 
at  all  times,  have  on  hand,  in  lawful  money  of  the  United  States, 
an  amount  equal  to  at  least  fifteen  per  centum  of  the  aggregate 
amount  of  its  notes  in  circulation,  and  of  its  deposits.  And  when- 
ever the  lawful  money  of  any  association  in  any  of  the  cities 
hereinafter  named  shall  be  below  the  amount  of  twenty-five  per 
centum  of  its  circulation  and  deposits,  and  whenever  the  lawful 
money  of  any  other  association  shall  be  below  fifteen  per  cen- 
tum of  its  circulation  and  deposits,  such  association  shall  not 
increase  its  liabilities  by  making  any  new  loans  or  discounts 
otherwise  than  by  discounting  or  purchasing  bills  of  exchange 
payable  at  sight,  nor  make  any  dividend  of  its  profits  until  the 
required  proportion  between  the  aggregate  amount  of  its  out- 
standing notes  of  circulation  and  deposits  and  its  lawful  money 
of  the  United  States  shall  be  restored:  Provided,  That  three 
fifths  of  said  fifteen  per  centum  may  consist  of  balances  due  to 
an  association  available  for  the  redemption  of  its  circulating 
notes  from  associations  approved  by  the  Comptroller  of  the 
Currency,  organized  under  this  act,  in  the  cities  of  Saint  Louis, 
Louisville,  Chicago,  Detroit,  Milwaukie,  New  Orleans,  Cincin- 
nati, Cleveland,  Pittsburg,  Baltimore,  Philadelphia,  Boston,  New 
York,  Albany,  Leavenworth,  San  Francisco,  and  Washington 
City  :  Provided,  also,  That  clearing-house  certificates,  represent- 
ing specie  or  lawful  money  specially  deposited  for  the  purpose 
of  any  clearing-house  association,  shall  be  deemed  to  be  lawful 
money  in  the  possession  of  any  association  belonging  to  such 
clearing-house  holding  and  owning  such  certificate,  and  shall  be 
considered  to  be  a  part  of  the  lawful  money  which  such  associa- 
tion is  required  to  have  under  the  foregoing  provisions  of  this 
section :  Provided,  That  the  cities  of  Charleston  and  Richmond 


1864.]          BANK  ACT:  REDEMPTION  OP  NOTES.  29 

may  be  added  to  the  list  of  cities  in  the  national  associations  of 
which  other  associations  may  keep  three  fifths  of  their  lawful 
money,  whenever,  in  the  opinion  of  the  Comptroller  of  the 
Currency,  the  condition  of  the  Southern  States  will  warrant  it. 
And  it  shall  be  competent  for  the  Comptroller  of  the  Currency 
to  notify  any  association,  whose  lawful  money  reserve  as  afore- 
said shall  be  below  the  amount  to  be  kept  on  hand  as  aforesaid, 
to  make  good  such  reserve ;  and  if  such  association  shall  fail  for 
thirty  days  thereafter  so  to  make  good  its  reserve  of  lawful 
money  of  the  United  States,  the  Comptroller  may,  with  the  con- 
currence of  the  Secretary  of  the  Treasury,  appoint  a  receiver 
to  wind  up  the  business  of  such  association,  as  provided  in  this 
act. 

SEC.  32.  And  be  it  further  enacted,  That  each  association  or- 
ganized in  any  of  the  cities  named  in  the  foregoing  section  shall 
select,  subject  to  the  approval  of  the  Comptroller  of  the  Cur- 
rency, an  association  in  the  city  of  New  York,  at  which  it  will 
redeem  its  circulating  notes  at  par.  And  each  of  such  associa- 
tions may  keep  one  half  of  its  lawful  money  reserve  in  cash 
deposits  in  the  city  of  New  York.  And  each  association  not 
organized  within  the  cities  named  in  the  preceding  section  shall 
select,  subject  to  the  approval  of  the  Comptroller  of  the  Cur- 
rency, an  association  in  either  of  the  cities  named  in  the  preced- 
ing section  at  which  it  will  redeem  its  circulating  notes  at  par, 
and  the  Comptroller  shall  give  public  notice  of  the  names  of  the 
associations  so  selected  at  which  redemptions  are  to  be  made  by 
the  respective  associations,  and  of  any  change  that  may  be  made 
of  the  association  at  which  the  notes  of  any  association  are  re- 
deemed. If  any  association  shall  fail  either  to  make  the  selec- 
tion or  to  redeem  its  notes  as  aforesaid,  the  Comptroller  of  the 
Currency  may,  upon  receiving  satisfactory  evidence  thereof, 
appoint  a  receiver,  in  the  manner  provided  for  in  this  act,  to 
wind  up  its  affairs :  Provided,  That  nothing  in  this  section  shall 
relieve  any  association  from  its  liability  to  redeem  its  circulating 
notes  at  its  own  counter,  at  par,  in  lawful  money,  on  demand : 
And  provided,  further,  That  every  association  formed  or  existing 
under  the  provisions  of  this  act  shall  take  and  receive  at  par,  for 
any  debt  or  liability  to  said  association,  any  and  all  notes  or  bills 


30  BANK  ACT:   SURPLUS:  LIABILITIES.  [1864. 

issued  by  any  association  existing  under  and  by  virtue  of  this 
act. 

SEC.  33.  And  be  it  further  enacted,  That  the  directors  of  any 
association  may,  semi-annually,  each  year,  declare  a  dividend  of 
so  much  of  the  net  profits  of  the  association  as  they  shall  judge 
expedient ;  but  each  association  shall,  before  the  declaration  of  a 
dividend,  carry  one  tenth  part  of  its  net  profits  of  the  preced- 
ing half  year  to  its  surplus  fund  until  the  same  shall  amount  to 
twenty  per  centum  of  its  capital  stock. 

[Section  34  provides  for  quarterly  reports  of  the  condition  of  every 
association,  to  be  made  by  its  officers  to  the  Comptroller  and  published 
by  him,  and  also  for  monthly  reports  to  be  made  to  him.  This  section 
was  superseded  by  the  Act  of  March  3,  1869,  which  directs  that  every 
association  shall  make  at  least  five  reports  annually  of  its  resources  and 
liabilities  on  any  past  day  specified  by  the  Comptroller,  and  shall  publish 
the  same  in  a  newspaper  in  the  place  where  the  association  is  estab- 
lished ;  and  that  every  association  shall  also  report  to  the  Comptroller 
the  amount  of  its  net  earnings  and  dividends,  and  make  such  further 
special  reports  as  he  may  call  for.  15  Statutes  at  Large,  326.] 

SEC.  35.  And  be  it  further  enacted.  That  no  association  shall 
make  any  loan  or  discount  on  the  security  of  the  shares  of  its 
own  capital  stock,  nor  be  the  purchaser  or  holder  of  any  such 
shares,  unless  such  security  or  purchase  shall  be  necessary  to 
prevent  loss  upon  a  debt  previously  contracted  in  good  faith ; 
and  stock  so  purchased  or  acquired  shall,  within  six  months  from 
the  time  of  its  purchase,  be  sold  or  disposed  of  at  public  or 
private  sale,  in  default  of  which  a  receiver  may  be  appointed  to 
close  up  the  business  of  the  association,  according  to  the  pro- 
visions of  this  act. 

SEC.  36.  And  be  it  further  enacted,  That  no  association  shall 
at  any  time  be  indebted,  or  in  any  way  liable,  to  an  amount  ex- 
ceeding the  amount  of  its  capital  stock  at  such  time  actually 
paid  in  and  remaining  undiminished  by  losses  or  otherwise,  except 
on  the  following  accounts,  that  is  to  say  :  — 

First.  On  account  of  its  notes  of  circulation. 

Second.  On  account  of  moneys  deposited  with,  or  collected 
by,  such  association. 

Third.  On    account   of  bills  of  exchange   or   drafts   drawn 


1864.]     BANK  ACT:  EXPENSES  or  BUREAU:  TAXES.  31 

against  money  actually  on  deposit  to  the  credit  of  such  associa- 
tion, or  due  thereto. 

Fourth.  On  account  of  liabilities  to  its  stockholders  for  divi- 
dends and  reserved  profits. 

SKC.  37.  And  be  it  further  enacted,  That  no  association  shall, 
either  directly  or  indirectly,  pledge  or  hypothecate  any  of  its 
notes  of  circulation,  for  the  purpose  of  procuring  money  to  be 
paid  in  on  its  capital  stock,  or  to  be  used  in  its  banking  opera- 
tions, or  otherwise ;  nor  shall  any  association  use  its  circulating 
notes,  or  any  part  thereof,  in  any  manner  or  form,  to  create  or 
increase  its  capital  stock. 

[Section  38  forbids  any  association,  while  continuing  its  business,  to 
withdraw  or  permit  to  be  withdrawn  any  of  its  capital,  except  as  pro- 
vided in  section  13,  or  to  make  any  dividend  to  an  amount  exceeding  ita 
net  profits  then  on  hand,  deducting  therefrom  its  losses  and  bad  debts ; 
and  for  this  purpose  all  debts  on  which  interest  is  past  due  and  unpaid 
for  six  months,  unless  they  are  well  secured  and  in  process  of  collection, 
are  to  be  held  bad. 

Section  39  forbids  any  association  to  pay  out  or  put  in  circulation  the 
notes  of  any  bank  or  association  which  are  not  at  the  time  receivable  at 
par  by  the  association  paying  them  out ;  or  to  pay  out  or  put  in  circula- 
tion the  notes  of  any  bank  or  association  which  is  not  redeeming  ita 
notes  in  lawful  money.] 

SEC.  41.  And  be  it  further  enacted,  That  the  plates  and  spe- 
cial dies  to  be  procured  by  the  Comptroller  of  the  Currency  for 
the  printing  of  such  circulating  notes  shall  remain  under  his 
control  and  direction,  and  the  expenses  necessarily  incurred  in 
executing  the  provisions  of  this  act  respecting  the  procuring  of 
such  notes,  and  all  other  expenses  of  the  bureau,  shall  be  paid 
out  of  the  proceeds  of  the  taxes  or  duties  now  or  hereafter  to 
be  assessed  on  the  circulation,  and  collected  from  associations 
organized  under  this  act. 

[It  is  then  provided  that  every  association  shall  pay  to  the  United 
States  a  tax  of  one  per  cent,  per  annum  on  the  average  amount  of  its 
notes  in  circulation,  one  half  of  one  per  cent,  on  the  average  amount  of 
its  deposits,  and  one  half  of  one  per  cent,  on  its  capital  stock  beyond  the 
amount  invested  in  United  States  bonds.  But  the  shares  of  any  asso- 
ciation may  be  taxed  as  personal  property  by  the  State  in  which  it  is 
located,  and  not  elsewhere,  at  a  rate  not  greater  than  is  imposed  upon 
other  moneyed  capital  in  the  hands  of  the  citizens  of  the  State,  or  upon 


32  BANK  ACT:  DEPOSITS  OF  PUBLIC  MONEY.      [1864. 

the  shares  of  banks  organized  under  the  authority  of  the  State  ;  and  the 
real  estate  of  associations  shall  be  subject  to  State,  county,  and  munici- 
pal taxes  to  the  same  extent  as  other  real  estate. 

Section  42  provides  for  the  closing  of  any  association  upon  the  vote 
of  shareholders  owning  two  thirds  of  its  capital,  and  for  calling  in  its 
notes.  Under  this  section,  as  modified  by  the  Act  of  July  14,  1870,  any 
association  thus  voting  to  close  its  affairs  must  within  six  months  pay  to 
the  Treasurer  of  the  United  States  the  amount  of  its  outstanding  notes 
in  lawful  money;  whereupon  the  bonds  pledged  as  security  for  its  circu- 
lation shall  be  returned  to  it,  and  its  notes  shall  from  that  time  be  re- 
deemed at  the  Treasury  and  destroyed,  and  the  association  discharged 
from  all  liability  therefor.  16  Statutes  at  Large,  274. 

Section  44  provides  that  any  bank  established  under  the  laws  of  any 
State  may  by  vote  of  the  owners  of  two  thirds  of  its  capital  stock  be 
reorganized  as  an  association  under  this  act,  without  change  of  stock- 
holders or  directors  or  in  the  amount  of  its  shares,  provided  that  its 
capital  shall  not  be  less  than  is  prescribed  for  associations  under  this 
act.] 

SEC.  45.  And  be  it  further  enacted.  That  all  associations 
under  this  act,  when  designated  for  that  purpose  by  the  Secre- 
tary of  the  Treasury,  shall  be  depositaries  of  public  money,  ex- 
cept receipts  from  customs,  under  such  regulations  as  may  be 
prescribed  by  the  Secretary ;  and  they  may  also  be  employed  as 
financial  agents  of  the  government;  and  they  shall  perform  all 
such  reasonable  duties,  as  depositaries  of  public  moneys  and 
financial  agents  of  the  government,  as  may  be  required  of  them. 
And  the  Secretary  of  the  Treasury  shall  require  of  the  associa- 
tions thus  designated  satisfactory  security,  by  the  deposit  of 
United  States  bonds  and  otherwise,  for  the  safe-keeping  and 
prompt  payment  of  the  public  money  deposited  with  them,  and 
for  the  faithful  performance  of  their  duties  as  financial  agents  of 
the  government:  Provided,  that  every  association  which  shall 
be  selected  and  designated  as  receiver  or  depositary  of  the  pub- 
lic money  shall  take  and  receive  at  par  all  of  the  national  cur- 
rency bills,  by  whatever  association  issued,  which  have  been 
paid  in  to  the  government  for  internal  revenue,  or  for  loans  or 
stqcks. 

[Section  46  et  seq.  provides  that  if  any  association  shall  fail  to  redeem 
in  lawful  money  any  of  its  circulating  notes,  when  payment  thereof  is 
demanded  at  the  proper  place  during  the  usual  hours  of  business,  the 
holder  of  such  notes  may  cause  them  to  be  protested  and  notify  the 


18G4.]       BANK  ACT:  FAILURE  TO  REDEEM  NOTES.  33 

Comptroller  of  the  failure.  The  Comptroller,  if  satisfied  that  the  asso- 
ciation has  refused  to  pay  its  notes  and  is  in  default,  shall  declare  the 
bonds  pledged  by  the  association  to  be  forfeited  to  the  United  States  and 
shall  notify  the  holders  of  its  notes  to  present  them  for  payment  at  t!:e 
Treasury.  And  for  the  notes  thus  paid  at  the  Treasury,  the  Comptroller 
may  either  cancel  an  amount  of  the  bonds  equal  at  the  market  rate,  not 
exceeding  par,  to  the  notes  so  paid,  or  may  cause  the  necessary  amount 
of  the  bonds  to  be  sold  by  public  auction  in  the  city  of  New  York,  or 
may  sell  the  necessary  amount  by  private  sale,  provided  that  they  shall 
not  be  sold  by  private  sale  for  less  than  the  market  rate  nor  less  than 
par.  And  if  the  proceeds  of  the  bonds  pledged  by  the  association  are 
insufficient  to  reimburse  the  amount  expended  in  payment  of  its  notes, 
the  United  States  shall  have  a  first  and  paramount  lien  for  the  deficiency 
upon  all  the  assets  of  the  association,  to  be  made  good  in  preference  to 
all  other  claims. 

Section  60  authorizes  the  Comptroller,  when  satisfied  that  any  asso- 
ciation has  refused  to  pay  its  circulating  notes  and  is  in  default,  to  ap- 
point a  receiver,  who  shall  take  charge  of  all  the  books  and  assets  of  the 
association  and  collect  all  debts  and  property  belonging  to  it,  and,  if  nec- 
essary, enforce  the  individual  liability  of  the  shareholders  under  section 
12  of  this  act.  And  the  Comptroller,  after  reimbursing  to  the  United 
States,  from  the  fund  thus  collected,  any  deficiency  due  from  the  asso- 
ciation for  the  redemption  of  its  notes,  shall  make  a  ratable  payment  of 
the  debts  of  the  association,  and  the  remainder  of  the  fund,  if  any,  after 
payment  of  these  debts,  he  shall  pay  over  to  the  shareholders,  in  propor- 
tion to  the  stock  held  by  each.] 

SEC.  54.  And  be  it  further  enacted,  That  the  Comptroller  of 
the  Currency,  with  the  approbation  of  the  Secretary  of  the 
Treasury,  as  often  as  shall  be  deemed  necessary  or  proper,  shall 
appoint  a  suitable  person  or  persons  to  make  an  examination  of 
the  affairs  of  every  banking  association,  which  person  shall  not 
be  a  director  or  other  officer  in  any  association  whose  affairs  he 
shall  be  appointed  to  examine,  and  who  shall  have  power  to 
make  a  thorough  examination  into  all  the  affairs  of  the  associa- 
tion, and,  in  doing  so,  to  examine  any  of  the  officers  and  agents 
thereof  on  oath ;  and  shall  make  a  full  and  detailed  report  of 
the  condition  of  the  association  to  the  Comptroller. 

[Succeeding  sections  provide  penalties  for  embezzlement  by  the  officers 
of  any  association,  for  the  mutilation  or  disfigurement  of  notes  with  the 
iutent  to  make  them  unfit  for  reissue,  and  for  counterfeiting,  passing 
counterfeit  notes,  or  having  in  possession  such  notes  or  the  engraved 
plates  or  paper  for  making  such  notes,  with  intent  to  use. 


34          BANK  ACT:  COMPARED  WITH  ACT  OF  1863.    [1864. 

Section  61  requires  the  Comptroller  to  report  annually  to  Congress 
the  condition  of  every  association  as  shown  by  its  reports,  with  abstract 
statements  of  the  total  amount  of  liabilities,  resources,  and  reserves,  the 
amount  of  circulation  redeemed  and  outstanding  for  associations  which 
have  closed  their  business  during  the  year,  and  finally  such  changes  in 
the  laws  relative  to  banking  as  may  improve  the  system  and  increase  its 
security. 

Section  G2  repeals  the  Act  of  February  25, 1863,  but  provides  that  the 
repeal  shall  not  affect  organizations  or  proceedings  begun  or  had  under 
said  act,  and  that  circulation  issued  by  any  association  organized  under 
it  shall  be  deemed  a  part  of  the  circulation  authorized  by  the  present 
act.  And  it  is  further  provided  that  any  association  established  or  or- 
ganizing under  the  former  act  may  change  its  name,  with  the  approval 
of  the  Comptroller.] 

SEC.  63.  And  be  it  further  enacted,  That  persons  holding 
stock  as  executors,  administrators,  guardians,  and  trustees,  shall 
not  be  personally  subject  to  any  liabilities  as  stockholders  ;  but 
the  estates  and  funds  in  their  hands  shall  be  liable  in  like  man- 
ner and  to  the  same  extent  as  the  testator,  intestate,  ward,  or 
person  interested  in  said  trust-funds  would  be  if  they  were  re- 
spectively living  and  competent  to  act  and  hold  the  stock  in 
their  names. 

SEC.  64.  And  be  it  further  enacted,  That  Congress  may  at 
any  time  amend,  alter,  or  repeal  this  act. 

[By  the  Act  of  March  1,  1872,  Leavenworth  is  struck  out  from  the 
list  of  redemption  cities  in  section  31  above.  17  Statutes  at  Large,  32. 

The  use  of  the  word  "  national,"  as  a  part  of  the  name  of  any  bank 
not  organized  under  the  national  currency  act  above,  is  forbidden  by  the 
Act  of  March  3,  1873.  17  Statutes  at  Large,  603.] 

[Approved,  June  3,  1864.    13  Statutes  at  Large,  99.) 

NOTE.  —  The  above  act  is  in  substance  a  revision  of  that  of  February 
25, 1863,  with  only  such  changes  as  experience  had  shown  to  be  necessary 
for  the  trial  of  the  system.  Some  of  the  principal  points  of  difference 
between  the  two  acts  are  the  following  :  — 

The  Act  of  1863  made  no  provision  for  the  redemption  of  the  cir- 
culation by  the  banks  of  the  principal  cities,  such  as  is  contained  in  sec- 
tions 31  and  32  of  the  Act  of  1864 ;  but  simply  required  that  every  bank 
should  redeem  its  circulation  at  its  own  counter,  and  that  it  should  have 
for  that  and  other  purposes  a  reserve  equal  to  twenty-five  per  cent,  of  its 
circulation  and  deposits,  of  which  reserve  three-fifths  might  be  deposited 
with  associations  in  nine  principal  cities  named  in  the  act. 

The  prohibition  of  the  issue  of  circulating  notes  of  a  less  denomin.i 


1864.]  "THE    GOLD    BILL."  35 

tion  than  five  dollars,  contained  in  the  Act  of  1863,  is  removed  by  the 
Act  of  1804. 

The  bonds  deposited  to  secure  the  circulation  under  the  Act  of  1863, 
might  be  either  coupon  or  registered,  but  by  the  Act  of  1864  must  be  reg- 
istered. 

The  Act  of  1863  required  a  smaller  minimum  of  capital  for  a  new 
bank  than  the  Act  of  1864,  required  a  smaller  proportion  to  be  paid  in 
before  beginning  business,  and  allowed  a  longer  time  for  the  payment  of 
the  remainder. 

The  Act  of  1864  makes  more  complete  provision  than  that  of  1863 
for  the  conversion  of  State  banks  into  national  associations,  permitting 
the  retention  of  the  former  name  of  a  bank  after  conversion,  and  in  sec- 
tion 12  exempting  the  stockholders  of  such  banks  from  personal  liability 
under  certain  conditions,  which  were  intended  to  meet  the  case  of  the 
Bank  of  Commerce  in  the  city  of  New  York.  A  section  of  the  Act  of 
1863,  authorizing  any  State  bank  holding  United  States  bonds  to  the 
amount  of  one-half  of  its  capital  to  issue  circulating  notes  upon  pledge 
and  transfer  of  the  bonds,  is  omitted  in  the  Act  of  1864. 

The  Act  of  1863  failed  to  provide  as  to  the  taxation  of  shares  by  State 
authority. 

The  Act  of  1863  required  the  apportionment  of  the  total  circulation 
among  the  States  and  Territories,  one-half  according  to  representative 
population  and  one  half  having  due  regard  to  the  existing  banking  cap- 
ital and  resources.  This  provision  was  omitted  in  the  Act  of  1864,  but 
was  revived  in  substance  by  the  Act  of  March  3,  1865. 


XVI June,  1864.  —  An  Act  to  prohibit  certain  Sales  of  Gold 

and  Foreign  Exchange. 

Be  it  enacted,  .  .  .  That  it  shall  be  unlawful  to  make  any 
contract  for  the  purchase  or  sale  and  delivery  of  any  gold  coin 
or  bullion  to  be  delivered  on  any  day  subsequent  to  the  day  of 
making  such  contract,  or  for  the  payment  of  any  sum,  either 
fixed  or  contingent,  in  default  of  the  delivery  of  any  gold  coin 
or  bullion,  or  to  make  such  contract  upon  any  other  terms  than 
the  actual  delivery  of  such  gold  coin  or  bullion,  and  the  payment 
in  full  of  the  agreed  price  thereof,  on  the  day  on  which  such 
contract  is  made,  in  United  States  notes  or  national  currency,  and 
not  otherwise ;  or  to  make  any  contract  for  the  purchase  or  sale 
and  delivery  of  any  foreign  exchange  to  be  delivered  at  any  time 
beyond  ten  days  subsequent  to  the  making  of  such  contract ;  or 
for  the  payment  of  any  sum,  either  fixed  or  contingent,  in  de- 


36  "THE  GOLD  BILL."  [1864. 

fault  of  the  delivery  of  any  foreign  exchange,  or  upon  any  other 
terms  than  the  actual  delivery  of  such  foreign  exchange  within 
ten  days  from  the  making  of  such  contract,  and  the  immediate 
payment  in  full  of  the  agreed  price  thereof  on  the  day  of  de 
livery  iu  United  States  notes  or  national  currency ;  or  to  make 
any  contract  whatever  for  the  sale  and  delivery  of  any  gold  coin 
or  bullion  of  which  the  person  making  such  contract  shall  not, 
at  the  time  of  making  the  same,  be  in  actual  possession.  And 
it  shall  be  unlawful  to  make  any  loan  of  money  or  currency  not 
being  in  coin  to  be  repaid  in  coin  or  bullion,  or  to  make  any 
loan  of  coin  or  bullion  to  be  repaid  in  money  or  currency  other 
than  coin. 

SEC.  2.  And  be  it  further  enacted,  That  it  shall  be  further 
unlawful  for  any  banker,  broker,  or  other  person,  to  make  any 
purchase  or  sale  of  any  gold  coin  or  bullion,  or  of  any  foreign 
exchange,  or  any  contract  for  any  such  purchase  or  sale,  at  any 
other  place  than  the  ordinary  place  of  business  of  either  the 
seller  or  purchaser,  owned  or  hired,  and  occupied  by  him  individ- 
ually, or  by  a  partnership  of  which  he  is  a  member. 

SEC.  3.  And  be  it  further  enacted,  That  all  contracts  made  in 
violation  of  this  act  shall  be  absolutely  void. 

SEC.  4.  And  be  it  further  enacted,  That  any  person  who  shall 
violate  any  provisions  of  this  act  shall  be  held  guilty  of  a  mis- 
demeanor, and,  on  conviction  thereof,  be  fined  in  any  sum  not 
less  than  one  thousand  dollars,  nor  more  than  ten  thousand  dol- 
lars, or  be  imprisoned  for  a  period  not  less  than  three  months,  nor 
longer  than  one  year,  or  both,  at  the  discretion  of  the  court,  and 
shall  likewise  be  subject  to  a  penalty  of  one  thousand  dollars  for 
each  offence. 

SEC.  5.  And  be  it  further  enacted,  That  the  penalties  imposed 
by  the  fourth  section  of  this  act  may  be  recovered  in  an  action 
at  law  in  any  court  of  record  of  the  United  States,  or  any  court 
of  competent  jurisdiction,  which  action  may  be  brought  in  the 
name  of  the  United  States  by  any  person  who  will  sue  for  said 
penalty,  one  half  for  the  use  of  the  United  States,  and  the  other 
half  for  the  use  of  the  person  bringing  such  action.  And  the 
recovery  and  satisfaction  of  a  judgment  in  any  such  action  shall 
be  a  bar  to  the  imposition  of  any  fine  for  the  same  offence  in 


18G4.]  ISSUE   OP  BONDS  AND   TREASURY   NOTES.  37 

any  prosecution  instituted  subsequent  to  the  recovery  of  such 
judgment,  but  shall  not  be  a  bar  to  the  infliction  of  punishment 
by  imprisonment,  as  provided  by  said  fourth  section. 

SEC.  6.  And  be  it  further  enacted,  That  all  acts  and  parts  of 
acts  inconsistent  with  the  provisions  of  this  act  are  hereby  re- 
pealed. 

[Approved,  June  17,  1864.    13  Statutes  at  Large,  132.] 

NOTE.  —  The  above  act  was  repealed  by  the  Act  approved  July  2, 
1864.  See  13  Statutes  at  Large,  344. 

XVIL  .  .  .  June,  1864.  —  An  Act  to  provide  Ways  and  Means  jor 
ths  Support  of  the  Government,  and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  be,  and 
he  is  hereby,  authorized  to  borrow,  from  time  to  time,  on  the  credit  j^ 
of  the  United  States,  four  hundred  millions  of  dollars,  and  to  issue  |»  M/ 
therefor  coupon  or  registered  bonds  of  the  Uuited  States,  redeem- 
able  at  the  pleasure  of  the  government,  after  any  period  not  less 
than  five,  nor  more  than  thirty,  years,  or,  if  deemed  expedient, 
made  payable  at  any  period  not  more  than  forty  years  from  date,  fit 
And  said  bonds  shall  be  of  such  denominations  as  the  Secretary 
of  the  Treasury  shall  direct,  not  less  than  fifty  dollars,  and  bear 
an  annual  interest  not  exceeding  six  per  centum,  payable  semi- 
annually  in  coin.  And  the  Secretary  of  the  Treasury  may  dis- 
pose of  such  bonds,  or  any  part  thereof,  and  of  any  bonds 
commonly  known  as  five-twenties  remaining  unsold,  in  the 
United  States,  or,  if  he  shall  find  it  expedient,  in  Europe,  at 
any  time,  on  such  terms  as  he  may  deem  most  advisable,  for  law- 
ful money  of  the  United  States,  or,  at  his  discretion,  for  treasury 
uotes,  certificates  of  indebtedness,  or  certificates  of  deposit  issued 
under  any  act  of  Congress.  And  all  bonds,  treasury  notes,  and 
other  obligations  of  the  United  States  shall  be  exempt  from 
taxation  by  or  under  State  or  municipal  authority. 

SEC.  2.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may  issue  on  the  credit  of  the  United  States,  and  ia 
lieu  of  an  equal  amount  of  bonds  authorized  by  the  preceding 
section,  and  as  a  part  of  said  loan,  not  exceeding  two  hundred 
millions  of  dollars,  in  treasury  notes  of  any  denomination  not 
less  than  ten  dollars,  payable  at  any  time  not  exceeding  three 


(M 


ISSUE    OF   LEGAL    TENDER    NOTES    LIMITED.        [1804. 

years  from  date,  or,  if  thought  more  expedient,  redeemable  at 
any  time  after  three  years  from  date,  and  bearing  interest  not 
exceeding  the  rate  of  seven  and  three-tenths  per  centum,  payable 
in  lawful  money  at  maturity,  or,  at  the  discretion  of  the  Secre- 
tary, semi-annually.  And  the  said  treasury  notes  may  be  dis- 
posed of  by  the  Secretary  of  the  Treasury,  on  the  best  terms 
that  can  be  obtained,  for  lawful  money ;  and  such  of  them  as 

,11  be  made  payable,  principal  and  interest,  at  maturity,  shall 
be  a  legal  tender  to  the  same  extent  as  United  States  notes  for 
their  face  value,  excluding  interest,  and  may  be  paid  to  any 
creditor  of  the  United  States  at  their  face  value,  excluding 
interest,  or  to  any  creditor  willing  to  receive  them  at  par, 
including  interest;  and  any  treasury  notes  issued  under  the 
authority  of  this  act  may  be  made  convertible,  at  the  discre- 
tion of  the  Secretary  of  the  Treasury,  into  any  bonds  issued 
under  the  authority  of  this  act.  And  the  Secretary  of  the 
Treasury  may  redeem,  and  cause  to  be  cancelled  and  destroyed, 
any  treasury  notes  or  United  States  notes  heretofore  issued 
under  authority  of  previous  acts  of  Congress,  and  substitute, 
in  lieu  thereof,  an  equal  amount  of  treasury  notes  such  as  are 
authorized  by  this  act,  or  of  other  United  States  notes:  Pro- 
vided^ That  the  total  amount  of  bonds  and  treasury  notes  author- 
ized by  the  first  and  second  sections  of  this  act  shall  not  exceed 
four  hundred  millions  of  dollars,  in  addition  to  the  amounts 
heretofore  issued ;  nor  shall  the  total  amount  of  United  States 
notes,  issued  or  to  be  issued,  ever  exceed  four  hundred  millions 
of  dollars,  and  such  additional  sum,  not  exceeding  fifty  millions 
of  dollars,  as  may  be  temporarily  required  for  the  redemption  of 
temporary  loan ;  nor  shall  any  treasury  note  bearing  interest, 
issued  under  this  act,  be  a  legal  tender  in  payment  or  redemption 
of  any  notes  issued  by  any  bank,  banking  association,  or  banker, 
calculated  or  intended  to  circulate  as  money. 

[Section  3  authorizes  the  Secretary  of  the  Treasury  to  exchange  bonds 
heretofore  issued  on  which  tiie  interest  is  payable  annually,  for  others 
bearing  interest  payable  semi-annually.  The  treasury  notes  heretofore 

ued,  bearing  seven  and  three-tenths  per  cent,  interest,  may  be  exchanged 
for  the  six  per  cent,  bonds  heretofore  authorized,  at  any  time  within  three 
months  after  notice  of  redemption  given  by  the  Secretary,  after  which 
interest  on  such  notes  shall  cease ;  and  the  interest  on  such  notes  after 


18G4.]       FURTHER    INCREASE    OF   TEMPORARY   DEPOSITS.          30 

maturity  shall  be  paid  in  lawful  money.  So  much  of  the  Act  of  March 
3,  1864,  as  limits  the  loan  therein  authorized  to  the  current  fiscal  year,  is 
repealed.  The  authority  to  issue  bonds  or  notes,  conferred  by  section  1 
of  the  Act  of  March  3, 1863,  is  to  cease  on  the  passage  of  this  act,  except 
so  far  as  it  may  affect  seventy-five  millions  of  bonds  already  advertised.] 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may  authorize  the  receipt,  as  a  temporary  loan,  of 
Uuited  States  notes,  or  the  notes  of  national- banking  associations, 
on  deposit  for  not  less  than  thirty  days,  in  sums  of  not  less  than 
fifty  dollars,  by  any  of  the  Assistant  Treasurers  of  the  United 
States,  or  depositaries  designated  for  that  purpose,  other  than 
national  banking  associations,  who  shall  issue  certificates  of  de- 
posit in  such  form  as  the  Secretary  of  the  Treasury  shall  pre- 
scribe, bearing  Interest  not  exceeding  six  per  centum  annually, 
and  payable  at  any  time  after  the  term  of  deposit,  and  after  ten 
days'  subsequent  notice,  unless  time  and  notice  be  waived  by  the  •  > 
Secretary  of  the  Treasury ;  and  the  Secretary  of  the  Treasury  ^ 
may  increase  the  interest  on  deposits  at  less  than  six  per  centum  * 
to  that  rate,  or,  on  ten  days'  notice  to  depositors,  may  diminish 
the  rate  of  interest  as  the  public  interest  may  require ;  but  the 
aggregate  of  such  deposits  shall  not  exceed  one  hundred  and 
fifty  millions  of  dollars ;  and  the  Secretary  of  the  Treasury  may 
issue,  and  shall  hold  in  reserve  for  payment  of  such  deposits, 
United  States  notes  not  exceeding  fifty  millions  of  dollars,  includ- 
ing the  amount  already  applied  in  such  payment ;  and  the  United 
States  notes,  so  held  in  reserve,  shall  be  used  only  when  needed, 
in  his  judgment,  for  the  prompt  payment  of  such  deposits  on 
demand,  and  shall  be  withdrawn  and  placed  again  in  reserve  as  the 
amount  of  deposits  shall  again  increase. 

[Section  5  authorizes  the  Secretary  of  the  Treasury  to  issue  "  notes 
of  the  fractions  of  a  dollar  as  now  used  for  currency,"  and  to  provide 
for  their  redemption  when  mutilated  or  defaced,  and  for  their  receipt  in 
payment  of  debts  to  the  United  States,  except  for  customs,  in  sums  not  over 
five  dollars ;  and  laws  applicable  to  the  fractional  notes  now  authorized 
are  made  applicable  to  all  fractional  notes,  postage  currency,  or  postage 
stamps  issued  as  currency,  heretofore  authorized ;  but  the  whole  amount 
of  all  notes  or  stamps  less  than  one  dollar  issued  as  currency  shall  not 
exceed  fifty  millions  of  dollars.] 

[Approved,  June  30,  1864.    13  Statutes  at  Large,  218.J 


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40  LAST    LEGAL    TENDER   ACT.  [18Go. 

XVHI  ____  January,  1865.  —  An  Act  to  amend  an  Act  entitled 
"  An  Act  to  provide  Ways  and  Means  for  the  Support  of  the 
Government,  and  for  other  Purposes"  approved  June  thir- 
tieth, eighteen  hundred  and  sixty-four. 

Be  it  enacted,  .  .  .  That  in  lieu  of  any  bonds  authorized  to  be 
issued  by  the  first  section  of  the  act  entitled  "  An  act  to  provide 
ways  and  means  for  the  support  of  the  government,"  approved 
June  thirtieth,  eighteen  hundred  and  sixty-four,  that  may  remain 
unsold  at  the  date  uf  this  act,  the  Secretary  of  the,  Treasury 
may  ksue,  un<ler  the  authority  of  said  act,  treasury  notes  of  the 
description  and  character  authorized  by  the  second  section  of 
said  act  :  Provided,  That  the  whole  amount  of  bonds  authorized 
aforesaid,  and  treasury  notes  issued  and  to  be  issued  in  lieu 


thurrof,  .-hull  not  cxi'o<'d  the  sum  of  four  hundred  millions  of 
dollars  ;  and  such  treasury  notes  may  be  disposed  of  for  lawful 
money,  or  for  any  other  treasury  notes  or  certificates  of  indebted- 
ness or  certificates  of  deposit  issued  under  any  previous  act  of 
Congress;  and  such  notes  shall  be  exempt  from  taxation  by  or 
under  State  or  municipal  authority. 

SEC.  2.  And  be  it  further  enacted,  That  any  bonds  known  as 
five-twenties,  issued  under  the  act  of  twenty-fifth  February 
eighteen  hundred  and  sixty-two,  remaining  unsold  to  an  amount 
not  exceeding  four  millions  of  dollars,  may  be  disposed  of  by  the 
Secretary  of  the  Treasury  in  the  United  States,  or,  if  he  shall 
find  it  expedient,  in  Europe,  at  any  timey  on  such  terms  as  he 
may  deem  most  advisable  :  Provided,  That  this  act  shall  not  be 
so  construed  as  to  give  any  authority  for  the  issue  of  any  legal 
tender  notes,  in  any  form,  beyond  the  balance  unissued  of  the 
amount  authorized  by  the  second  section  of  the  act  to  which  this 
is  an  amendment. 

[Approved,  January  28,  1865.     13  Statutes  at  Large,  425.] 

XIX  ----  March,  1865.  —  An  Act  to  provide  Ways  and  Means 

for  the  Support  of  the  Government. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  be,  and 
he  is  hereby,  authorized  to  borrow,  from  time  to  time,  on  the  credit 
of  the  United  States,  in  addition  to  the  amounts  heretofore 


1865.]  FUNDING   OF   FLOATING   DEBT.  41 

authorized,  any  sums  not  exceeding  hi  the  aggregate  six  hundred  Jk  (0.6*0   f 
millions  of  dollars,  and  to  issue  therefor  bonds  or  treasury  notes  * 
of  the  United  States,  in  such  form  as  he  may  prescribe ;  and  so 
much  thereof  as  may  be  issued  in  bonds  shall  be  of  denomina- 
tions not  less  than  fifty  dollars,  and  may  be  made  payable  at  any. 
period  not  more  than  forty  years  from  date  of  issue,  or  may  be 
made  redeemable  at  the  pleasure  of  the  government,  at  or  after     (J>  6  ff/1"^  \j 

any  period  not  less  than  five  years  nor  more  than  forty  years . 

from  date,  or  may  be  made  redeemable  and  payable  as  aforesaid,  •/" 
as  may  be  expressed  upon  their  face ;  and  so  much  thereof  as  may  '^ 
be  issued  in  treasury  notes  may  be  made  convertible  into  any 
bonds  authorized  by  this  act,  and  may  be  of  such  denominations 
—  not  less  than  fifty  dollars  —  and  bear  such  dates,  and  be  made 
redeemable  or  payable  at  such  periods  as  in  the  opinion  of  the 
Secretary  of  the  Treasury  may  be  deemed  expedient.  And  the 
interest  on  such  bonds  shall  be  payable  semi-annually ;  and  on 
treasury  notes  authorized  by  this  act  the  interest  may  be  made 
payable  semi-annually,  or  annually,  or  at  maturity  thereof;  and 
the  principal,  or  interest,  or  both,  may  be  made  payable  in  coin 
or  in  other  lawful  money:  Provided,  That  the  rate  of  interest  on 
any  such  bonds  or  treasury  notes,  when  payable  in  coin,  shall  not 
exceed  six  per  centum  per  annum ;  and  when  not  payable  in  coin 
shall  not  exceed  seven  and  three-tenths  per  centum  per  annum ; 
and  the  rate  and  character  of  interest  shall  be  expressed  on  all 
such  bonds  or  treasury  notes :  And  provided,  further,  That  the 
act  entitled  •'  An  act  to  provide  ways  and  means  for  the  support 
of  the  government,  and  for  other  purposes,"  approved  June  thir- 
tieth, eighteen  hundred  and  sixty-four,  shall  be  so  construed  as  to 
authorize  the  issue  of  bonds  of  any  description  authorized  by  this 
act.  And  any  treasury  notes  or  other  obligations  bearing  inter- 
est, issued  under  any  act  of  Congress,  may,  at  the  discretion  of 
the  Secretary  of  the  Treasury,  and  with  the  consent  of  the 
holder,  be  converted  into  any  description  of  bonds  authorized  by  ^^^^  ^  ^ 
this  act ;  and  no  bonds  so  authorized  shall  be  considered  a  part  ^  fr-tyy-**"  •*  O 

of  the  amount  of  six  hundred  millions  hereinbefore  authorized.    "   &***      jV****^ 

[Section  2  authorizes  the  Secretary  of  the  Treasury  to  dispose  of  any    V**  *^ 
of  the  obligations  issued  under  this  act,  where  and  under  such  condition, 
and  at  such  rates  as  he  thinks  best,  for  coin  or  other  lawful 


TAX  ON  NOTES  OF  STATE  BANKS. 


[1865. 


treasury  notes,  or  certificates  of  indebtedness  or  of  deposit,  and  the  like ; 
and  to  issue  bonds  or  treasury  notes  authorized  by  this  act  in  payment  of 
requisitions  for  materials  or  supplies,  on  receiving  notice  that  the  owner 
of  the  claim  for  which  any  requisition  is  made  desires  to  subscribe  for  a 
portion  of  the  loan ;  "and  all  bonds  or  other  obligations  issued  under  this 
act  shall  be  exempt  from  taxation  by  or  under  state  or  municipal 
authority." 

Section  3  contains  a  proviso,  "  That  nothing  herein  contained  shall  be 
construed'as  authorizing  the  issue  of  legal-tender  notes  in  any  form."] 

[Approved,  March  3,  1865.    13  Statutes  at  Large,  468.] 

3KX. . . .  March,  1865.  —  An  Act  to  amend  an  Act  entitled  ''  An 
Act  to  provide  Internal  Revenue  to  support  the  Govern- 
ment, to  pay  Interest  on  the  Public  Debt,  and  for  other 
Purposes"  approved  June  thirtieth,  eighteen  hundred  and 
sixty-four. 

SEC.  6.  And  be  it  further  enacted,  That  every  national  bank- 
ing association,  State  bank,  or  State  banking  association,  shall 
pay  a  tax  of  ten  per  centum  on  the  amount  of  notes  of  any 
State  bank  or  State  banking  association,  paid  out  by  them  after 
the  first  day  of  July,  eighteen  hundred  and  sixty -six. 

[Section  9  of  the  act  to  reduce  internal  taxation,  approved  July  13, 
1866,  includes  the  notes  "of  any  person"  among  those  to  be  taxed  as 
above.  13  Statutes  at  Large,  146. 

Section  2  of  "  An  act  to  exempt  wrapping  paper,  made  from  wood  or 
cornstalks,  from  internal  tax,  and  for  other  purposes,"  approved,  March 
26,  1867,  includes  also  the  notes  of  any  town,  city,  or  municipal  corpora- 
tion among  those  to  be  taxed  as  above.  15  Statutes  at  Large,  6.] 

SEC.  7.  And  be  it  further  enacted,  That  any  existing  bank 
organized  under  the  laws  of  any  State,  having  a  paid-up  capital 
of  not  less  than  seventy-five  thousand  dollars,  which  shall  apply 
before  the  first  day  of  July  next  for  authority  to  become  a  na- 
tional bank  under  the  act  entitled  "  An  act  to  provide  a  national 
currency  secured  by  a  pledge  of  United  States  bonds,  and  to 
provide  for  the  circulation  and  redemption  thereof,"  approved 
June  third,  eighteen  hundred  and  sixty-four,  and  shall  comply 
with  all  the  requirements  of  said  act,  shall,  if  such  bank  be  found 
by  the  Comptroller  of  the  Currency  to  be  in  good  standing  and 
credit,  receive  such  authority  in  preference  to  new  associations 
applying  for  the  same.  .  .  . 

[Approved,  March  3,  1865.     13  Statutes  at  Large,  469.] 


18G5.]  BANK   CIRCULATION   APPORTIONED.  43 

XXI. . . .  March,  1865.  —  An  Act  to  amend  an  Act  entitled  "  An 

Act  to  provide  a  National  Currency,  secured  by  a  Pledge  of 

United  States  Bonds,  and  to  provide  for  the  Circulation  and 

Redemption  thereof" 

Be  it  enacted,  .  .  .  That  section  twenty-one  of  said  act  be  so 

amended  that  said  section  shall  read  as  follows  : 

[Li  lieu  of  the  concluding  sentence  of  said  section  "  and  at  no  time 
shall  the  total  amount  of  such  notes  .  .  .  exceed  the  amount  ...  of  its 
capital  stock  "  the  following  is  substituted  :  ] 

.  .  .  and  the  amount  of  said  circulating  notes  to  be  furnished 
to  each  association  shall  be  in  proportion  to  its  paid-up  capital 
as  follows,  and  no  more :  To  each  association  whose  capital  shall 
not  exceed  five  hundred  thousand  dollars,  ninety  per  centum  of 
such  capital ;  to  each  association  whose  capital  exceeds  five  hun- 
dred thousand  dollars,  but  does  not  exceed  one  million  dollars, 
eighty  per  centum  of  such  capital ;  to  each  association  whose 
capital  exceeds  one  million  dollars,  but  does  not  exceed  three 
millions  of  dollars,  seventy-five  per  centum  of  such  capital ;  to 
each  association  whose  capital  exceeds  three  millions  of  dollars, 
sixty  per  centum  of  such  capital.  And  that  one  hundred  and  fifty 
millions  of  dollars  of  the  entire  amount  of  circulating  notes 
authorized  to  be  issued  shall  be  apportioned  to  associations  in 
the  States,  in  the  District  of  Columbia,  and  in  the  Territories, 
according  to  representative  population,  and  the  remainder  shall 
be  apportioned  by  the  Secretary  of  the  Treasury  among  asso- 
ciations formed  in  the  several  States,  in  the  District  of  Columbia, 
and  in  the  Territories,  having  due  regard  to  the  existing  bank- 
ing capital,  resources,  and  business  of  such  States,  District,  and 
Territories. 

[Approved,  March  3, 18G5.     13  Statutes  at  Large,  498.] 

XXII April,  1866.  —  An  Act  to  amend  an  Act  entitled  "  An 

Act  to  provide    Ways  and  Means  to  support  the    Govern- 
ment" approved  March  third,  eighteen  hundred  and  sixty- 
Jive. 
Be  it  enacted,  .  .  .  That  the  act  entitled  "  An  act  to  provide 

ways  and  means  to  support  the  Government,"  approved  March 


44  REDUCTION    OP   CURRENCY   LIMITED.  [1866. 

third,  eighteen  hundred  and  sixty-five,  shall  be  extended  and 
construed  to  authorize  the  Secretary  of  the  Treasury,  at  his  dis- 
cretion, to  receive  any  treasury  notes  or  other  obligations  issued 
under  any  act  of  Congress,  whether  bearing  interest  or  not,  in 
exchange  for  any  description  of  bonds  authorized  by  the  act  to 
which  this  is  an  amendment ;  and  also  to  dispose  of  any  descrip- 
tion of  bonds  authorized  by  said  act,  either  in  the  United  Stages 
or  elsewhere,  to  such  an  amount,  in  such  manner,  and  at  such 
rates  as  he  may  think  advisable,  for  lawful  money  of  t.hfi  TTnitp.fl 
States,  or  for  any  treasury  notes,  Certificates  of  indebtedness,  or 
certificates  of  deposit,  or  other  representatives  of  value,  which 
have  been  or  which  may  be  issued  under  any  act  of  Congress, 
the  proceeds  thereof  to  be  used  only  for  retiring  treasury  notes 
or  other  obligations  issued  under  any  act  of  Congress ;  but 
nothing  herein  contained  shall  be  construed  to  authorize  any  in- 
crease of  the  public  debt:  Provided,  That  of  United  States 
notes  not  more  than  ten  millions  of  dollars  may  be  retired  and 
cancelled  within  six  months  from  the  passage  of  this  act,  and 
thereafter  not  more  than  four  millions  of  dollars  in  any  one 
mouth:  And  provided  further,  That  the  act  to  which  this  is  an 
amendment  shall  continue  in  full  force  in  all  its  provisions,  ex- 
cept as  modified  by  this  act. 

[Approved,  April  12,  1866.    14  Statutes  at  Large,  81.] 

NOTE.  —  The  following  resolution  was  adopted  by  the  House  of  Rep- 
resentatives, December  18,  1865 :  — 

"Resolved,  That  this  House  cordially  concurs  in  the  views  of  the 
Secretary  of  the  Treasury  in  relation  to  the  necessity  of  a  contraction  of 
the  currency  with  a  view  to  as  early  a  resumption  of  specie  payments  as 
the  business  interests  of  the  country  will  permit ;  and  we  hereby  pledge 
cooperative  action  to  this  end  as  speedily  as  possible." 

[Congressional  Globe,  December,  1865,  p.  75.] 

XXHL  . . .  March,  1867.  — An  Act  to  provide  Ways  and  Means 

for  the  Payment  of  Compound  Interest  Notes. 
[This  act  directs  the  Secretary  of  the  Treasury,  for  the  purpose  of 
redeeming  any  outstanding  compound  interest  notes,  to  issue  temporary 
loan  certificates  as  prescribed  by  section  4  of  the  act  of  February  25, 
1862,  bearing  interest  not  exceeding  three  per  cent,  per  annum,  and  prin- 
cipal and  interest  payable  in  lawful  money  on  demand ;  the  amount  of 
certificates  at  any  time  outstanding  not  to  exceed  fifty  millions  of  dollars. 


1868.]  REDUCTION    OF   CURRENCY   SUSPENDED.  45 

And  said  certificates  may  be  held  by  any  national  bank  as  part  of  the 
reserve  required  by  sections  31  and  32  of  the  National  Currency  Act  of 
June  3,  1804;  but  not  less  than  two-fifths  of  the  entire  reserve  of  such 
bank  shall  consist  of  lawful  money.] 

[Approved,  March  2,  18C7.    14  Statutes  at  Large,  658.J 

XXIV February,  1868.  —  An  Act  to  suspend  further  Reduc- 
tion of  the  Currency. 

Be  it  enacted,  .  .  .  That  from  and  after  the  passage  of  this 
act,  the  authority  of  the  Secretary  of  the  Treasury  to  make  any 
reduction  of  the  currency,  by  retiring  or  cancelling  United 
States  notes,  shall  be,  and  is  hereby,  suspended ;  but  nothing 
herein  contained  shall  prevent  the  cancellation  and  destruction 
of  mutilated  United  States  notes,  and  the  replacing  of  the  same 
with  notes  of  the  same  character  and  amount. 

NOTE.  —  The  above  act  having  been  presented  to  the  President  of  the 
United  States  for  his  approval,  and  not  having  been  returned  by  him  to 
the  House  of  Congress  in  which  it  originated  within  the  time  prescribed 
by  the  Constitution,  became  a  law  without  his  approval,  February  4, 
1868. 

[15  Statutes  at  Large,  34.] 

XXV. . . .  July,  1868.  —  An  Act  to  provide  for  a  further  Isaue 
of  temporary  Loan  Certificates,  for  the  Purpose  of  redeem- 
ing and  retiring  the  Remainder  of  the  outstanding  Com- 
pound Interest  Notes. 

[For  the  sole  purpose  of  redeeming  the  remainder  of  the  compound 
interest  notes,  this  act  adds  twenty-five  millions  of  dollars  to  the  amount 
of  three  per  cent,  temporary  loan  certificates  authorized  by  the  act  of 
March  2,  1867.] 

[Approved,  July  25,  1868.     15  Statutes  at  Large,  183.] 

XXVI February,  1869.  —  An  Act  to  prevent  loaning  Money 

upon  United  States  Notes. 

Be  it  enacted,  .  .  .  That  no  national  banking  association  shall 
hereafter  offer  or  receive  United  States  notes  or  national  bank 
notes  as  security  or  as  collateral  security  for  any  loan  of  money, 
or  for  a  consideration  shall  agree  to  withhold  the  same  from 
use,  or  shall  offer  or  receive  the  custody  or  promise  of  custody 


46  FAITH    OF    THE   UNITED    STATES    PLEDGED.          [I860. 

of  such  notes  as  security,  or  as  collateral  security,  or  considera- 
tion for  any  loan  of  money.  .  .  . 

[Approved,  February  19,  1869.    15  Statutes  at  Large,  270.] 

XXVIL  . . .  March,  1869.  —  An  Act  to  strengthen  the   Public 

Credit. 

Be  it  enacted,  .  .  .  That  in  order  to  remove  any  doubt  as  to 
the  purpose  of  the  government  to  discharge  all  just  obligations 
to  the  public  creditors,  and  to  settle  conflicting  questions  and  in- 
terpretations of  the  laws  by  virtue  of  which  such  obligations 
have  been  contracted,  it  is  hereby  provided  and  declared  that 
the  faith  of  the  United  States  is  solemnly  pledged  to  the  pay- 
ment in  coin  or  its  equivalent  of  all  the  obligations  of  the  United 
States  not  bearing  interest,  known  as  United  States  notes,  and 
of  all  the  interest-bearing  obligations  of  the  United  States,  ex- 
cept in  cases  where  the  law  authorizing  the  issue  of  any  such 
obligation  has  expressly  provided  that  the  same  may  be  paid  in 
lawful  money  or  other  currency  than  gold  or  silver.  But  none 
of  said  interest-bearing  obligations  not  already  due  shall  be  re- 
deemed or  paid  before  maturity  unless  at  such  time  United 
States  notes  shall  be  convertible  into  coin  at  the  option  of  the 
holder,  or  unless  at  such  time  bonds  of  the  United  States  bear- 
ing a  lower  rate  of  interest  than  the  bonds  to  be  redeemed  can 
be  sold  at  par  in  coin.  And  the  United  States  also  solemnly 
pledges  its  faith  to  make  provision  at  the  earliest  practicable 
period  for  the  redemption  of  the  United  States  notes  in  coin. 

[Approved,  March  18,  1869.    16  Statutes  at  Large,  1.] 

XXVIII. . . .  July,  1870.  —  An  Act  to  provide  for  the  Redemption 
of  the  three  per  cent,  temporary  Loan  Certifcates,  and  for 
an  Increase  of  National  Bank  Notes. 

Be  it  enacted,  .  .  .  That  fifty-four  millions  of  dollars  in  notes 
for  circulation  may  be  issued  to  national  banking  associations, 
in  addition  to  the  three  hundred  millions  of  dollars  authorized 
by  the  twenty-second  section  of  the  "  Act  to  provide  a  national 
currency,  secured  by  a  pledge  of  United  States  bonds,  and  to 
provide  foi  the  circulation  and  redemption  thereof,"  approved 


1870.]  INCREASE    OF    BANK    CIRCULATION.  47 

June  three,  eighteen  hundred  and  sixty-four ;  and  the  amount 
of  notes  so  provided  shall  he  furnished  to  banking  associations 
organized  or  to  he  organized  in  those  States  and  Territories 
having  less  than  their  proportion  under  the  apportionment  con- 
templated by  the  provisions  of  the  "  Act  to  amend  an  act  to 
provide  a  national  currency,  secured  by  a  pledge  of  United 
States  bonds,  and  to  provide  for  the  circulation  and  redemption 
thereof,"  approved  March  three,  eighteen  hundred  and  sixty- 
five,  and  the  bonds  deposited  with  the  Treasurer  of  the  United 
States,  to  secure  the  additional  circulating  notes  herein  author- 
ized, shall  be  of  any  description  of  bonds  of  the  United  States 
bearing  interest  in  coin,  but  a  new  apportionment  of  the  in- 
creased circulation  herein  provided  for  shall  be  made  as  soon  as 
practicable,  based  upon  the  census  of  eighteen  hundred  and  sev- 
enty: Provided,  That  if  applications  for  the  circulation  herein 
authorized  shall  not  be  made  within  one  year  after  the  passage 
of  this  act  by  banking  associations  organized  or  to  be  organized 
in  States  having  less  than  their  proportion,  it  shall  be  lawfcil  for 
the  Comptroller  of  the  Currency  to  issue  such  circulation  to 
banking  associations  applying  for  the  same  in  other  States  or 
Territories  having  less  than  their  proportion,  giving  the  prefer- 
ence to  such  as  have  the  greatest  deficiency :  And  provided 
further,  That  no  banking  association  hereafter  organized  shall 
have  a  circulation  in  excess  of  five  hundred  thousand  dollars. 

[Section  2  provides  that  at  the  end  of  every  month  the  Secretary  of 
the  Treasury  shall  call  in  and  redeem  an  amount  of  the  three  per  cent, 
temporary  loan  certificates  issued  under  the  Acts  of  March  2,  1867,  and 
July  25,  1868,  not  less  than  the  amount  of  circulating  notes  issued  to  na- 
tional banking  associations  under  the  preceding  section  during  the  pre- 
vious month.] 

SEC.  3.  And  be  it  farther  enacted,  That  upon  the  deposit  of 
any  United  States  bonds,  bearing  interest  payable  in  gold,  with 
the  Treasurer  of  the  United  States,  in  the  manner  prescribed  in 
the  nineteenth  and  twentieth  sections  of  the  national  currency 
act,  it  shall  be  lawful  for  the  Comptroller  of  the  Currency  to 
issue  to  the  association  making  the  same,  circulating  notes  of 
different  denominations,  not  less  than  five  dollars,  not  exceeding 
in  amount  eighty  per  centum  of  the  par  value  of  the  bonds  de- 


48  GOLD   BANKS.  [1870. 

posited,  which  notes  shall  bear  upon  their  face  the  promise  of 
the  association  to  which  they  are  issued  to  pay  them,  upon  pres- 
entation at  the  office  of  the  association,  in  gold  coin  of  the 
United  State?,  and  shall  be  redeemable  upon  such  presentation 
in  such  coin :  Provided,  That  no  banking  association  organized 
under  this  section  shall  have  a  circulation  in  excess  of  one  mil- 
lion of  dollars. 

SEC.  4.  And  be  it  farther  enacted,  That  every  national  bank- 
ing association  formed  under  the  provisions  of  the  preceding 
section  of  this  act  shall  at  all  times  keep  on  hand  not  less  than 
twenty-five  per  centum  of  its  outstanding  circulation  in  gold  or 
silver  coin  of  the  United  States,  and  shall  receive  at  par  in  the 
payment  of  debts  the  gold  notes  of  every  other  such  banking 
association  which  at  the  time  of  such  payments  shall  be  redeem- 
ing its  circulating  notes  in  gold  coin  of  the  United  States. 

SEC.  5.  And  be  it  further  enacted,  That  every  association  or- 
ganized for  the  purpose  of  issuing  gold  notes  as  provided  in  this 
act  shall  be  subject  to  all  the  requirements  and  provisions  of  the 
national  currency  act,  except  the  first  clause  of  section  twenty- 
two,  which  limits  the  circulation  of  national  banking  associations 
to  three  hundred  millions  of  dollars;  the  first  clause  of  section 
thirty -two,  which,  taken  in  connection  with  the  preceding  section, 
would  require  national  banking  associations  organized  in  the 
city  of  San  Francisco  to  redeem  their  circulating  notes  at  par 
in  the  city  of  New  York ;  and  the  last  clause  of  section  thirty- 
two,  which  requires  every  national  banking  association  to  re- 
ceive in  payment  of  debts  the  notes  of  every  other  national 
banking  association  at  par :  Provided,  That  in  applying  the  pro- 
visions and  requirements  of  said  act  to  the  banking  associations 
herein  provided  for,  the  terms  "lawful  money,"  and  "lawful 
money  of  the  United  States,"  shall  be  held  and  construed  to 
mean  gold  or  silver  coin  of  the  United  States. 

SEC.  6.  And  be  it  further,  enacted,  That  to  secure  a  more 
equitable  distribution  of  the  national  banking  currency  there 
may  be  issued  circulating  notes  to  banking  associations  organized 
in  States  and  Territories  having  less  than  their  proportion  as 
herein  set  forth.  And  the  amounts  of  circulation  in  this  section 
authorized  shall,  under  the  direction  of  the  Secretary  of  the 


1870.]  FUNDING  LOAN.  49 

Treasury,  as  it  may  be  required  for  this  purpose,  be  withdrawn, 
as  herein  provided,  from  banking  associations  organized  in  States 
having  a  circulation  exceeding  that  provided  for  by  the  act  en- 
titled "  An  act  to  amend  an  act  entitled  '  An  act  to  provide  for 
a  national  banking  currency,  secured  by  pledge  of  United  States 
bonds,  and  to  provide  for  the  circulation  and  redemption 
thereof,' "  approved  March  three,  eighteen  hundred  and  sixty- 
five,  but  the  amount  so  withdrawn  shall  not  exceed  twenty-five 
million  dollars. 

[It  is  then  provided  that  the  redistribution  shall  be  made,  when  re- 
quired, by  withdrawing  from  banks  having  a  circulation  exceeding  one 
million  dollars  such  excess,  in  States  having  more  than  their  proportion  ; 
and  then  from  banks  having  a  circulation  exceeding  three  hundred  thou- 
sand dollars  their  excess  over  that  amount,  beginning  with  States  having 
the  largest  proportion  in  excess,  and  proceeding,  if  necessary,  to  those 
having  a  smaller  proportion.  Upon  the  failure  of  any  association  to  re- 
tire the  amount  of  its  circulation  required  as  above,  the  Comptroller  of 
the  Currency  is  authorized  to  sell  the  necessary  amount  of  its  bonds  and 
to  redeem  its  notes  to  the  amount  required,  But  no  circulation  is  to  be 
withdrawn  under  this  section  until  the  fifty-four  millions  granted  in  sec- 
tion 1  shall  have  been  taken  up. 

Section  7  provides  that  after  six  months  from  the  passage  of  this  act 
any  association  may  be  removed  from  any  State  having  more  than  its 
proportion  of  circulation  to  any  State  having  less  than  its  proportion  ; 
but  the  amount  of  the  issue  of  said  association  shall  not  be  deducted 
from  the  new  issue  herein  provided  for.] 

[Approved,  July  12,  1870.    16  Statutes  at  Large,  251.]. 

XXIX July,  1870.  —  An  Act  to  authorize  the  Refunding  oj 

the  National  Debt. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  to  issue,  in  a  sum  or  sums  not  exceeding  in 
the  aggregate  two  hundred  million  dollars,  coupon  or  registered 
bonds  of  the  United  States,  in  such  form  as  he  may  prescribe,  f^A 
and  of  denominations  of  fifty  dollars,  or  some  multiple  of  that  .  i  J 
sum,  redeemable  in  coin  of  the  present  standard  value,  at  the 
pleasure  of  the  United  States,  after  ten  years  from  the  date  of 
their  issue,  and  bearing  interest,  payable  semi-annually  in  such 
coin,  at  the  rate  of  five  per  cent,  per  annum ;  also  a  sum  or  sums 
not  exceeding  in  the  aggregate  three  hundred  million  dollars  of 
4 


50  FUNDING    LOAN.  [1870. 

like  bonds,  the  same  in  all  respects,  but  payable  at  the  pleasure 
of  the  United  States,  after  fifteen  years  from  the  date  of  their 
issue,  and  bearing  interest  at  the  rate  of  four  and  a  half  per 
cent,  per  annum;  also  a  sum  or  sums  not  exceeding  in  the 
aggregate  one  thousand  million  dollars  of  like  bonds,  the  same 
in  all  respects,  but  payable  at  the  pleasure  of  the  United  States, 
after  thirty  years  from  the  date  of  their  issue,  and  bearing  inter- 
est at  the  rate  of  four  per  cent,  per  annum  ;  all  of  which  said 
several  classes  of  bonds  and  the  interest  thereon  shall  be  ex- 
empt from  the  payment  of  all  taxes  or  duties  of  the  United 
States,  as  well  as  from  taxation  in  any  form  by  or  under 
State,  municipal,  or  local  authority ;  and  the  said  bonds  shall 
have  set  forth  and  expressed  upon  their  face  the  above-specified 
conditions,  and  shall,  with  their  coupons,  be  made  payable  at  the 
Treasury  of  the  United  States.  But  nothing  in  this  act,  or  in 
any  other  law  now  in  force,  shall  be  construed  to  authorize  any 
increase  whatever  of  the  bonded  debt  of  the  United  States. 

[By  the  amendatory  Act  of  January  20,  1871,  the  amount  of  bonds 
to  be  issued  bearing  interest  at  five  per  cent,  is  increased  to  five  hundred 
millions  of  dollars,  but  without  any  increase  of  the  total  amount  of  bonds 
provided  for  above  ;  and  the  Secretary  of  the  Treasury  is  authorized  to 
make  the  interest  of  any  of  the  bonds  so  provided  for  payable  quarter- 
yearly.  16  Statutes  at  Large,  899.] 

SEC.  2.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  is  hereby  authorized  to  sell  and  dispose  of  any  of  the 
bonds  issued  under  this  act,  at  not  less  than  their  par  value  for 
and  to  apply  the  proceeds  thereof  to  the  redemption  of  any 
bonds  of  the  United  States  outstanding,  and  known  as  five- 
twenty  bonds,  at  their  par  value,  or  he  may  exchange  the  same 
for  such  five-twenty  bonds,  par  for  par;  but  the  bonds  hereby 
authorized  shall  be  used  for  no  other  purpose  whatsoever.  And 
a  sum  not  exceeding  one-half  of  one  per  cent,  of  the  bonds 
herein  authorized  is  hereby  appropriated  to  pay  the  expense  of 
preparing,  issuing,  advertising,  and  disposing  of  the  same. 

[Section  4  authorizes  the  Secretary  of  the  Treasury,  with  any  coin 
that  is  lawfully  applicable,  to  pay  at  par  and  cancel  any  of  the  five- 
twenty  bonds  that  may  become  redeemable  by  the  terms  of  their  issue  ; 
the  particular  bonds  so  to  be  paid  to  be  called  for  by  public  notice  speci- 


1870.]  DEPOSITS    OF    GOLD.      SINKING   FUND.  51 


fying  their  class,  date  and  number,  and  interest  on  them  to 
three  months  after  the  date  of  such  notice.] 

SEC.  5.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  is  hereby  authorized,  at  any  time  within  two  years 
from  the  passage  of  this  act,  to  receive  gold  coin  of  the  United 
States  on  deposit  for  not  less  than  thirty  days,  in  sums  of  not 
less  than  one  hundred  dollars,  with  the  Treasurer,  or  any  Assist- 
ant Treasurer  of  the  United  States  authorized  by  the  Secretary 
of  the<  Treasury  to  receive  the  same,  who  shall  issue  therefor 
certificates  of  deposit,  made  in  such  form  as  the  Secretary  of  the 
Treasury  shall  prescribe,  and  said  certificates  of  deposit  shall 
bear  interest  at  a  rate  not  exceeding  two  and  a  half  per  cent, 
per  annum  ;  and  any  amount  of  gold  coin  so  deposited  may  be 
withdrawn  from  deposit  at  any  time  after  thirty  days  from  the 
date  of  deposit,  and  after  ten  days'  notice  and  on  the  return  of 
said  certificates  :  Provided,  That  the  interest  on  all  such  de- 
posits shall  cease  and  determine  at  the  pleasure  of  the  Secretary 
of  the  Treasury.  And  not  less  than  twenty-five  per  cent,  of  the 
coin  deposited  for  or  represented  by  said  certificates  of  deposits 
shall  be  retained  in  the  treasury  for  the  payment  of  said  certifi- 
cates ;  and  the  excess  beyond  twenty-five  per  cent,  may  be  ap- 
plied at  the  discretion  of  the  Secretary  of  the  Treasury  to  the 
payment  or  redemption  of  such  outstanding  bonds  of  the  United 
States  heretofore  issued  and  known  as  the  five-twenty  bonds,  as 
he  may  designate  under  the  provisions  of  the  fourth  section  of 
this  act ;  and  any  certificates  of  deposit  issued  as  aforesaid, 
may  be  received  at  par  with  the  interest  accrued  thereon  in  pay- 
ment for  any  bonds  authorized  to  be  issued  by  this  act. 

SEC.  6.  And  be  it  further  enacted,  That  the  United  States 
bonds  purchased  and  now  held  in  the  treasury  in  accordance 
with  the  provisions  relating  to  a  sinking  fund,  of  section  five  of 
the  act  entitled  "  An  act  to  authorize  the  issue  of  United  States 
notes,  and  for  the  redemption  or  funding  thereof,  and  for  funding 
the  floating  debt  of  the  United  States,"  approved  February 
twenty-fifth,  eighteen  hundred  and  sixty-two,  and  all  other 
United  States  bonds  which  have  been  purchased  by  the  Secre- 
tary of  the  Treasury  with  surplus  funds  in  the  treasuiy,  and  now 
held  in  the  Treasury  of  the  United  States,  shall  be  cancelled 


52  CERTIFICATES    OF    DEPOSIT.  [1872. 

and  destroyed,  a  detailed  record  of  such  bonds  so  cancelled  and 
destroyed  to  be  first  made  in  the  books  of  the  Treasury  Depart- 
ment. Any  bonds  hereafter  applied  to  said  sinking  fund,  and 
all  other  United  States  bonds  redeemed  or  paid  hereafter  by  the 
United  States,  shall  also  in  like  manner  be  recorded,  cancelled 
and  destroyed,  and  the  amount  of  the  bonds  of  each  class  that 
have  been  cancelled  and  destroyed  shall  be  deducted  respectively 
from  the  amount  of  each  class  of  the  outstanding  debt  of  the 
United  States.  In  addition  to  other  amounts  that  maybe  applied 
to  the  redemption  or  payment  of  the  public  debt,  an  amount  equal 
to  the  interest  on  all  bonds  belonging  to  the  aforesaid  sinking 
fund  shall  be  applied,  as  the  Secretary  of  the  Treasury  shall  from 
time  to  time  direct,  to  the  payment  of  the  public  debt  as  pro- 
vided for  hi  section  five  of  the  act  aforesaid.  And  the  amount 
so  to  be  applied  is  hereby  appropriated  annually  for  that  pur- 
pose, out  of  the  receipts  for  duties  on  imported  goods. 

[Approved,  July  14,  1870.     16  Statutes  at  Large,  272.] 

XXX June,  1872.  —  An  Act  for  the  better  Security  of  Bank 

Reserves,  and  to  facilitate  Bank  Clearing-house  Exchanges. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  to  receive  United  States  notes  on  deposit, 
without  interest,  from  national  banking  associations,  in  sums  not 
less  than  ten  thousand  dollars,  and  to  issue  certificates  therefor 
in  such  form  as  the  secretary  may  prescribe,  in  denominations 
of  not  less  than  five  thousand  dollars ;  which  certificate  shall  be 
payable  on  demand  in  United  States  notes,  at  the  place  where 
the  deposits  were  made. 

SEC.  2.  That  the  United  States  notes  so  deposited  in  the 
Treasury  of  the  United  States  shall  not  be  counted  as  part  of 
the  legal  reserve;  but  the  certificates  issued  therefor  may  be 
held  and  counted  by  national  banks  as  part  of  their  legal  re- 
serve, and  may  be  accepted  in  the  settlement  of  clearing-house 
balances  at  the  places  where  the  deposits  therefor  were  made. 

SEC.  3.  That  nothing  contained  in  this  act  shall  be  construed 
to  authorize  any  expansion  or  contraction  of  the  currency  ;  and 
the  United  States  notes  for  which  such  certificates  are  issued,  or 
other  United  States  notes  of  like  amount,  shall  be  held  as  spe- 


1874.]        FIVE    PER    CENT.   RESERVE   FOR   BANK    NOTES. 


53 


cial  deposits  in  the  treasury,  and  used  only  for  the  redemption 
of  such  certificates. 

[Approved,  June  8, 1872.    17  Statutes  at  Large,  336.] 

XXXI. . . .  June,  1874.  —  An  Act  fixing  the  Amount  of  United 
States  Notes,  providing  for  a  Redistribution  of  the  National 
Bank  Currency,  and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  act  entitled  "  An  act  to  provide 
a  national  currency  secured  by  a  pledge  of  United  States  bonds, 
and  to  provide  for  the  circulation  and  redemption  thereof,"  ap- 
proved June  third,  eighteen  hundred  and  sixty-four,  shall  be 
hereafter  known  as  "  the  national  bank  act." 

SEC.  2.  That  section  thirty-one  of  the  "  national  bank  act "  be 
so  amended  that  the  several  associations  therein  provided  for  shall 
not  hereafter  be  required  to  keep  on  hand  any  amount  of  money 
whatever,  by  reason  of  the  amount  of  their  respective  circula- 
tions ;  but  the  moneys  required  by  said  section  to  be  kept  at  all 
times  on  hand  shall  be  determined  by  the  amount  of  deposits  in 
all  respects,  as  provided  for  in  the  said  section. 

SEC.  3.  That  every  association  organized,  or  to  be  organized, 
under  the  provisions  of  the  said  act,  and  of  the  several  acts 
amendatory  thereof,  shall  at  all  times  keep  and  have  on  deposit 
in  the  Treasury  of  the  United  States,  in  lawful  money  of  the 
United  States,  a  sura  equal  to  five  per  centum  of  its  circulation, 
to  be  held  and  used  for  the  redemption  of  such  circulation ; 
which  sum  shall  be  counted  as  a  part  of  its  lawful  reserve,  as 
provided  in  section  two  of  this  act;  and  when  the  circulating 
notes  of  any  such  associations,  assorted  or  unassorted,  shall  be 
presented  for  redemption,  in  sums  of  one  thousand  dollars,  or 
any  multiple  thereof,  to  the  Treasurer  of  the  United  States,  the 
same  shall  be  redeemed  in  United  States  notes.  All  notes  so 
redeemed  shall  be  charged  by  the  Treasurer  of  the  United  States 
to  the  respective  associations  issuing  the  same,  and  he  shall  notify 
them  severally,  on  the  first  day  of  each  month,  or  oftener,  at 
his  discretion,  of  the  amount  of  such  redemptions ;  and  when- 
ever such  redemptions  for  any  association  shall  amount  to  the 
sum  of  five  hundred  dollars,  such  association  so  notified  shall 


54 


REDEMPTION   OF   BANK   NOTES.  [1874. 


forthwith  deposit  with  the  Treasurer  of  the  United  States  a  sum 
in  United  States  notes  equal  to  the  amount  of  its  circulating 
notes  so  redeemed.  And  all  notes  of  national  banks  worn,  de- 
faced, mutilated,  or  otherwise  unfit  for  circulation  shall,  when 
received  by  any  Assistant  Treasurer  or  at  any  designated  de- 
pository of  the  United  States,  be  forwarded  to  the  Treasurer  of 
the  United  States  for  redemption  as  provided  herein.  And 
when  such  redemptions  have  been  so  reimbursed,  the  circulating 
notes  so  redeemed  shall  be  forwarded  to  the  respective  associa- 
tions by  which  they  were  issued ;  but  if  any  of  such  notes  are 
worn,  mutilated,  defaced,  or  rendered  otherwise  unfit  for  use, 
they  shall  be  forwarded  to  the  Comptroller  of  the  Currency  and 
destroyed  and  replaced  as  now  provided  by  law  :  Provided,  That 
each  of  said  associations  shall  reimburse  to  the  treasury  the 
charges  for  transportation,  and  the  costs  for  assorting  such  notes ; 
and  the  associations  hereafter  organized  shall  also  severally  re- 
imburse to  the  treasury  the  cost  of  engraving  such  plates  as  shall 
be  ordered  by  each  association  respectively ;  and  the  amount 
assessed  upon  each  association  shall  be  in  proportion  to  the  cir- 
culation redeemed,  and  be  charged  to  the  fund  on  deposit  with 
the  Treasurer :  And  provided  further,  That  so  much  of  section 
thirty-two  of  said  national  bank  act  requiring  or  permitting  the  re- 
demption of  its  circulating  notes  elsewhere  than  at  its  own  counter, 
except  as  provided  for  in  this  section,  is  hereby  repealed. 

SEC.  4.  That  any  association  organized  under  this  act,  or  any 
of  the  acts  of  which  this  is  an  amendment,  desiring  to  withdraw 
its  circulating  notes,  in  whole  or  in  part,  may,  upon  the  deposit 
of  lawful  money  with  the  Treasurer  of  the  United  States  in 
sums  of  not  less  than  nine  thousand  dollars,  take  up  the  bonds 
which  said  association  has  on  deposit  with  the  Treasurer  for  the 
security  of  such  circulating  notes;  which  bonds  shall  be  assigned 
to  the  bank  in  the  manner  specified  in  the  nineteenth  section  of 
the  national  bank  act ;  and  the  outstanding  notes  of  said  asso- 
ciation, to  an  amount  equal  to  the  legal  tender  notes  deposited, 
shall  be  redeemed  at  the  Treasury  of  the  United  States,  and 
destroyed  as  now  provided  by  law :  Provided,  That  the  amount 
of  the  bonds  on  deposit  for  circulation  shall  not  be  reduced  be- 
low fifty  thousand  dollars. 


1874.]  NEW   LIMIT    OF    LEGAL    TENDER   NOTES.  55 

SEC.  5.  That  the  Comptroller  of  the  Currency  shall,  under 
sucij  rules  and  regulations  as  the  Secretary  of  the  Treasury  may 
prescribe,  cause  the  charter  numbers  of  the  association  to  be 
printed  upon  all  national  bank  notes  which  may  be  hereafter 
issued  by  him. 

SEC.  6.  That  the  amount  of  United  States  notes  outstanding 
and  to  be  used  as  a  part  of  the  circulating  medium,  shall  not  ex- 
ceed the  sum  of  three  hundred  and  eighty-two  million  dollars, 
which  said  sum  shall  appear  in  each  monthly  statement  of  the 
public  debt,  and  no  part  thereof  shall  be  held  or  used  as  a  re- 
serve. 

SEC.  7.  That  so  much  of  the  act  entitled  "  An  act  to  pro- 
vide for  the  redemption  of  the  three  per  centum  temporary  loan 
certificates,  and  for  an  increase  of  national  bank  notes,"  as  pro- 
vides that  no  circulation  shall  be  withdrawn  under  the  provisions 
of  section  six  of  said  act,  until  after  the  fifty-four  millions 
granted  in  section  one  of  said  act  shall  have  been  taken  up,  is 
hereby  repealed ;  and  it  shall  be  the  duty  of  the  Comptroller  of 
the  Currency,  under  the  direction  of  the  Secretary  of  the  Treas- 
ury, to  proceed  forthwith,  and  he  is  hereby  authorized  and  re- 
quired, from  time  to  time,  as  applications  shall  be  duly  made 
therefor,  and  until  the  full  amount  of  fifty-five '  million  dollars 
shall  be  withdrawn,  to  make  requisitions  upon  each  of  the  na- 
tional banks  described  in  said  section,  and  in  the  manner  therein 
provided,  organized  in  States  having  an  excess  of  circulation,  to 
withdraw  and  return  so  much  of  their  circulation  as  by  said  act 
may  be  apportioned  to  be  withdrawn  from  them,  or,  in  lieu 
thereof,  to  deposit  in  the  Treasury  of  the  United  States  lawful 
money  sufficient  to  redeem  such  circulation,  and  upon  the  return 
of  the  circulation  required,  or  the  deposit  of  lawful  money,  aa 
herein  provided,  a  proportionate  amount  of  the  bonds  held  to 
secure  the  circulation  of  such  association  as  shall  make  such  re- 
turn or  deposit  shall  be  surrendered  to  it. 

SEC.  8.  That  upon  the  failure  of  the  national  banks  upon 
which  requisition  for  circulation  shall  be  made,  or  of  any  of 
them,  to  return  the  amount  required,  or  to  deposit  in  the  Treasury 
lawful  money  to  redeem  the  circulation  required,  within  thirty 
days,  the  Comptroller  of  the  Currency  shall  at  once  sell  as  pro- 


56  REDISTRIBUTION    OF   BANK    CIRCULATION.          [1874. 

vided  in  section  forty-nine  of  the  national  currency  act,  approved 
June  third,  eighteen  hundred  and  sixty-four,  bonds  held  to  secure 
the  redemption  of  the  circulation  of  the  association  or  associa- 
tions which  shall  so  fail,  to  an  amount  sufficient  to  redeem  the 
circulation  required  of  such  association  or  associations,  and  with 
the  proceeds,  which  shall  be  deposited  in  the  Treasury  of  the 
United  States,  so  much  of  the  circulation  of  such  association  or 
associations  shall  be  redeemed  as  will  equal  the  amount  required 
and  not  returned,  and  if  there  be  any  excess  of  proceeds  over 
the  amount  required  for  such  redemption,  it  shall  be  returned  to 
the  association  or  associations  whose  bonds  shall  have  been  sold. 
And  it  shall  be  the  duty  of  the  Treasurer,  Assistant  Treasurers, 
designated  depositaries,  and  national  bank  depositaries  of  the 
United  States,  who  shall  be  kept  informed  by  the  Comptroller 
of  the  Currency  of  such  associations  as  shall  fail  to  return  circula- 
tion as  required,  to  assort  and  return  to  the  Treasury  for  redemp- 
tion the  notes  of  such  associations  as  shall  come  into  their  hands 
until  the  amount  required  shall  be  redeemed,  and  in  like  manner 
to  assort  and  return  to  the  Treasury,  for  redemption,  the  notes 
of  such  national  banks  as  have  failed,  or  gone  into  voluntary 
liquidation  for  the  purpose  of  winding  up  their  affairs,  and  of 
such  as  shall  hereafter  so  fail  or  go  into  liquidation. 

SEC.  9.  That  from  and  after  the  passage  of  this  act  it  shall 
be  lawful  for  the  Comptroller  of  the  Currency,  and  he  is  hereby 
required,  to  issue  circulating  notes,  without  delay,  as  applications 
therefor  are  made,  not  to  exceed  the  sum  of  fifty-five  million 
dollars,  to  associations  organized,  or  to  be  organized,  in  those 
States  and  Territories  having  less  than  their  proportion  of  cir- 
culation, under  an  apportionment  made  on  the  basis  of  population 
and  of  wealth,  as  shown  by  the  returns  of  the  census  of  eighteen 
hundred  and  seventy  ;  and  every  association  hereafter  organized 
shall  be  subject  to,  and  be  governed  by  the  rules,  restrictions, 
and  limitations,  and  possess  the  rights,  privileges,  and  franchises, 
now  or  hereafter  to  be  prescribed  by  law  as  to  national  banking 
associations,  with  the  same  power  to  amend,  alter,  and  repeal 
provided  by  "  the  national  bank  act : "  Provided,  That  the  whole 
amount  of  circulation  withdrawn  and  redeemed  from  banks  trans- 
acting business  shall  not  exceed  fifty-five  million  dollars,  and 


1875.]  A    SILVICIi    COINAGE.      FREE    BANKING.  57 


that  such  circulation  shall  be  withdrawn  and  redeemed  as  it  shall 
be  necessary  to  supply  the  circulation  previously  issued  to  the 
banks  in  those  States  having  less  than  their  apportionment  :  And 
provided  further,  That  not  more  than  thirty  million  dollars  shall 
be  withdrawn  and  redeemed  as  herein  contemplated  during  the 
fiscal  year  ending  June  thirtieth,  eighteen  hundred  and  seventy- 
five. 

[Approved,  June  20,  1874.    18  Statutes  at  Large,  123.] 

XXXII  ----  January,  1875.  —  An  Act  to  provide  for  the  Resump- 

tion of  Specie  Payments. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  and  required,  as  rapidly  as  practicable,  to 
cause  to  be  coined  at  the  mints  of  the  United  States,  silver  coins 
of  the  denominations  of  ten,  twenty-five,  and  fifty  cents,  of 
standard  value,  and  to  issue  them  in  redemption  of  an  equal 
number  and  amount  of  fractional  currency  of  similar  denomina- 
tions, or,  at  his  discretion,  he  may  issue  such  silver  coins  through 
the  mints,  the  subtreasuries,  public  depositaries,  and  post-offices 
of  the  United  States  ;  and,  upon  such  issue,  he  is  hereby  author- 
ized and  required  to  redeem  an  equal  amount  of  such  fractional 
currency,  until  the  whole  amount  of  such  fractional  currency 
outstanding  shall  be  redeemed. 

[An  act  approved  April  17,  1876,  makes  further  provision  for  the 
issue  of  silver  coin  in  redemption  of  fractional  currency,  and  also  pro- 
vides that  the  fractional  currency  so  redeemed  shall  be  held  to  be  a  part 
of  the  sinking-fund,  and  that  interest  shall  be  computed  thereon,  as  in 
the  case  of  bonds  belonging  to  the  sinking-fund.  See  19  Statutes  at 
Large,  33.] 

SEC.  2.  That  so  much  of  section  three  thousand  five  hun- 
dred and  twenty-four  of  the  Revised  Statutes  of  the  United 
States  as  provides  for  a  charge  of  one-fifth  of  one  per  centum 
for  converting  standard  gold  bullion  into  coin  is  hereby  repealed, 
and  hereafter  no  charge  shall  be  made  for  that  service. 

SEC.  3.  That  section  five  thousand  one  hundred  and  seventy- 
seven  of  the  Revised  Statutes  of  the  United  States,  limiting  the 
aggregate  amount  of  circulating  notes  of  national  banking  asso- 
ciations, be,  and  is  hereby,  repealed  ;  and  each  existing  banking 
association  may  increase  its  circulating  notes  in  accordance  with 


58       LEGAL  TENDER  NOTES.   SPECIE  PAYMENTS.  [1875. 

.  existing  law  without  respect  to  said  aggregate  limit ;  and  new 
brinking  associations  may  be  organized  in  accordance  with  existing 
law  without  respect  to  said  aggregate  limit ;  and  the  provisions  of 
law  for  the  withdrawal  and  redistribution  of  national  bank  cur- 
rency among  the  several  States  and  Territories  are  hereby  re- 
pealed. And  whenever,  and  so  often,  as  circulating  notes  shall  be 
issued  to  any  such  banking  association,  so  increasing  its  capital 
or  circulating  notes,  or  so  newly  organized  as  aforesaid,  it  shall  be 
the  duty  of  the  Secretary  of  the  Treasury  to  redeem  the  legal  ten- 
der United  States  notes  in  excess  only  of  three  hundred  millions  of 
dollars,  to  the  amount  of  eighty  per  centum  of  the  sum  of  national 
bank  notes  so  issued  to  any  such  banking  association  as  afore- 
said, and  to  continue  such  redemption  as  such  circulating  notes 
are  issued  until  there  shall  be  outstanding  the  sum  of  three 
hundred  million  dollars  of  such  legal  tender  United  States  notes, 
and  no  more.  And  on  and  after  the  first  day  of  January,  anno 
Domini  eighteen  hundred  and  seventy-nine,  the  Secretary  of  the 
Treasury  shall  redeem,  in  coin,  the  United  States  legal  tender 
notes  then  outstanding  on  their  presentation  for  redemption,  at 
the  office  of  the  Assistant  Treasurer  of  the  United  States  in  the 
city  of  New  York,  in  sums  of  not  less  than  fifty  dollars.  And  to 
enable  the  Secretary  of  the  Treasury  to  prepare  and  provide  for 
the  redemption  in  this  act  authorized  or  required,  he  is  author- 
ized to  use  any  surplus  revenues,  from  time  to  time,  in  the 
Treasury  not  otherwise  appropriated,  and  to  issue,  sell,  and  dis- 
pose of,  at  not  less  than  par,  in  coin,  either  of  the  descriptions 
of  bonds  of  the  United  States  described  in  the  Act  of  Congress 
approved  July  fourteenth,  eighteen  hundred  and  seventy,  entitled, 
u  An  Act  to  authorize  the  refunding  of  the  national  debt,"  with 
like  qualities,  privileges,  and  exemptions,  to  the  extent  necessary 
to  carry  this  act  into  full  effect,  and  to  use  the  proceeds  thereof 
for  the  purposes  aforesaid.  And  all  provisions  of  law  incon- 
sistent with  the  provisions  of  this  act  are  hereby  repealed. 

[The  limit  of  circulation  fixed  by  section  5177  of  the  Revised  Statutes 
.  ia  that  prescribed  on  page  46  by  section  1  of  the  Act  of  July  12,  1870-1 

[Approved,  January  14,  1875.     18  Statutes  at  Large,  296.] 


1875.]          NOTES    OF    GOLD    BANKS.       SINKING   FOND.  59 


XXXIII.... January,  1875. —  An  Act  to  remove  the  Limitation 
restricting  the  Circulation  of  Banking  Associations  issuing 
Notes  payable  in  Gold. 

Be  it  enacted,  .  .  .  That  so  much  of  section  five  thousand 
one  hundred  and  eighty-five  of  the  Revised  Statutes  of  the 
United  States  as  limits  the  circulation  of  banking  associations, 
organized  for  the  purpose  of  issuing  notes  payable  in  gold,  sev- 
erally to  one  million  dollars,  be,  and  the  same  is  hereby,  re- 
pealed ;  and  each  of  such  existing  banking  associations  may 
increase  its  circulating  notes,  and  new  banking  associations  may 
be  organized,  in  accordance  with  existing  law,  without  respect 
to  such  limitation. 

[Approved,  January  19,  1875.     18  Statutes  at  Large,  302.] 

[The  limit  of  circulation  fixed  by  section  5185  of  the  Revised  Statutes 
is  that  prescribed  on  page  48,  by  section  3  of  the  Act  of  July  12,  1870.] 

XXXIV March,  1875. — An   Act    making  Appropriations 

for  sundry  Civil  Expenses  of  the  Government  for  the  facal 
year  ending  June  thirtieth ,  eighteen  hundred  and  seventy-six, 
and  for  other  purposes. 

SEC.  11.  That  the  Secretary  of  the  Treasury  is  hereby  au- 
thorized, at  such  times  as  may  be  necessary,  for  the  purpose  of 
obtaining  bonds  for  the  sinking-fund,  in  compliance  with  sec- 
tions three  thousand  six  hundred  and  ninety-four  to  three  thou- 
sand six  hundred  and  ninety -seven,  inclusive,  of  the  Revised 
Statutes  of  the  United  States,  to  give  public  notice  that  he  will 
redeem,  in  coin,  at  par,  any  bonds  of  the  United  States,  bearing 
interest  at  the  rate  of  six  per  centum,  of  the  kind  known  as 
five-twenties;  and  in  three  months  after  the  date  of  such  public 
notice,  the  interest  on  the  bonds  so  selected  and  called  for  pay- 
ment shall  cease. 

[Approved,  March  3,  1875.     18  Statutes  at  Large,  401.] 

[The  provisions  of  sections  3694-97  of  the  Revised  Statutes  are  the 
same  as  those  of  section  5  of  the  Act  of  February  25,  1862,  on  page  12, 
and  section  6  of  the  Act  of  July  14,  1870,  on  page  51.J 


LEGAL    TENDER    NOTES    NOT    TO    BE    RETIRED.       [1878. 


XXXV.  .  .  .  May,  1878.  —  An  Act  to  forbid  the  further  retire- 
ment of  United  States  legal-tender  notes. 

Be  it  enacted,  .  .  .  That  from  and  after  the  passage  of  this 
act  it  shall  not  be  lawful  for  the  Secretary  of  the  Treasury  or 
other  officer  under  him  to  cancel  or  retire  any  more  of  the  United 
States  legal-tender  notes.  And  when  any  of  said  notes  may  be 
redeemed  or  be  received  into  the  Treasury  under  any  law  from 
any  source  whatever  and  shall  belong  to  the  United  States, 
they  shall  not  be  retired  cancelled  or  destroyed  but  they  shall 
be  reissued  and  paid  out  again  and  kept  in  circulation  :  Provided, 
That  nothing  herein  shall  prohibit  the  cancellation  and  destruc- 
tion of  mutilated  notes  and  the  issue  of  other  notes  of  like 
denomination  in  their  stead,  as  now  provided  by  law. 

All  acts  and  parts  of  acts  in  conflict  herewith  are  hereby 
repealed. 

[Approved,  May  31,  1878.     20  Statutes  at  Large,  87.] 


XXXVI.  .  .  .  January,  1879.  —  An  Act  to  facilitate  the  re  fund- 
ing the  national  debt, 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  in  the  process  of  refunding  the  national  debt 
under  existing  laws  to  exchange  directly  at  par  the  bonds  of  the 
United  States  bearing  interest  at  four  per  centum  per  annum 
authorized  by  law  for  the  bonds  of  the  United  States  commonly 
known  as  five-twenties  outstanding  and  uncalled,  and,  whenever 
all  such  five-twenty  bonds  shall  have  been  redeemed,  the  pro- 
visions of  this  section  and  all  existing  provisions  of  law  author- 
izing the  refunding  of  the  national  debt  shall  apply  to  any  bonds 
of  the  United  States  bearing  interest  at  five  per  centum  per 
annum  or  a  higher  rate,  which  may  be  redeemable.  In  any 
exchange  made  under  the  provisions  of  this  section  interest 
may  be  allowed,  on  the  bonds  redeemed,  for  a  period  of  three 
months. 

[Approved,  January  25,  1879.     20  Statutes  at  Large,  265.] 


1879.]      REFUNDING.       CONVERSION    OF    GOLD    BANKS.  61 

XXXVII.  .  .   .  February,  1879.  —  An  Act  to  authorize  the  issue 
of  certificates  of  deposit  in  aid  of  the  refunding  of  the  public 
debt. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  and  directed  to  issue,  in  exchange  for  lawful 
money  of  the  United  States  that  may  be  presented  for  such 
exchange,  certificates  of  deposit,  of  the  denomination  of  ten 
dollars,  bearing  interest  at  the  rate  of  four  per  centum  per 
annum,  and  convertible  at  any  time,  with  accrued  interest  into 
the  four  per  centum  bonds  described  in  the  refunding  act ;  and 
the  money  so  received  shall  be  applied  only  to  the  payment 
of  the  bonds  bearing  interest  at  a  rate  of  not  less  than  five  per 
centum  in  the  mode  prescribed  by  said  act,  and  he  is  authorized 
to  prescribe  suitable  rules  and  regulations  in  conformity  with 

this  act. 

[Approved,  February  26,  1879.    20  Statutes  at  Large,  821.] 

XXXVIII.  .  .  .  February,  1880.  —  An  Act  authorizing  the  con- 

version of  national  gold  banks. 

Be  it  enacted,  .  .  .  That  any  national  gold  bank  organized 
under  the  provisions  of  the  laws  of  the  United  States,  may,  in 
the  manner  and  subject  to  the  provisions  prescribed  by  section 
fifty-one  hundred  and  fifty-four  of  the  Revised  Statutes  of  the 
United  States,  for  the  conversion  of  banks  incorporated  under 
the  laws  of  any  State,  cease  to  be  a  gold  bank,  and  become  such 
an  association  as  is  authorized,  by  section  fifty-one  hundred  and 
thirty-three,  for  carrying  on  the  business  of  banking,  and  shall 
have  the  same  powers  and  privileges,  and  shall  be  subject  to  the 
same  duties,  responsibilities,  and  rules,  in  all  respects,  as  are  by 
law  prescribed  for  such  associations :  Provided,  That  all  certifi- 
cates of  organization  which  shall  be  issued  under  this  act  shall 
bear  the  date  of  the  original  organization  of  each  bank  respec- 
tively as  a  gold  bank. 

[Approved,  February  14,  1880.    21  Statutes  at  Large,  66.] 

[The  provisions  of  sections  5133  and  5154  of  the  Revised  Statutes  are 
in  substance  those  of  section  5  of  the  Act  of  June  3,  1864,  on  page  23, 
and  section  44  of  the  same  Act,  on  page  32.] 


62  EXISTENCE    OF   NATIONAL    BANKS    EXTENDED.      [1881. 


XXXIX.  .  .  .  March,  1881.  —  An  Act  making  appropriations  for 
sundry  civil  expenses  of  the  Government  for  the  fiscal  year 
ending  June  thirtieth,  eighteen  hundred  and  eighty-two,  and 
for  other  purposes. 

SEC.  2.  That  the  Secretary  of  the  Treasury  may  at  any  time 
apply  the  surplus  money  in  the  Treasury  not  otherwise  appro- 
priated, or  so  much  thereof  as  he  may  consider  proper,  to  the 
purchase  or  redemption  of  United  States  bonds  :  Provided,  That 
the  bonds  so  purchased  or  redeemed  shall  constitute  no  part  of 
the  sinking-fund,  but  shall  be  cancelled. 

[Approved,  March  3,  1881.    21  Statutes  at  Large,  457. 1 


XL.  .  .  .  July,  1882.  —  An  Act  to  enable  national-banking 
associations  to  extend  their  corporate  existence,  and  for  other 
purposes. 

Be  it  enacted,  .  .  .  That  any  national  banking  association 
organized  under  the  acts  of  February  twenty-fifth,  eighteen 
hundred  and  sixty-three,  June  third,  eighteen  hundred  and  sixty- 
four,  and  February  fourteenth,  eighteen  hundred  and  eighty,  or 
under  sections  fifty-one  hundred  and  thirty-three,  fifty-one  hun- 
dred and  thirty-four,  fifty-one  hundred  and  thirty-five,  fifty-one 
hundred  and  thirty-six,  and  fifty-one  hundred  and  fifty-four  of 
the  Revised  Statutes  of  the  United  States,  may,  at  any  time 
within  the  two  years  next  previous  to  the  date  of  the  expiration 
of  its  corporate  existence  under  present  law,  and  with  the  ap- 
proval of  the  Comptroller  of  the  Currency,  to  be  granted  as 
hereinafter  provided,  extend  its  period  of  succession  by  amend- 
ing its  articles  of  association  for  a  term  of  not  more  than  twenty 
years  from  the  expiration  of  the  period  of  succession  named  in 
said  articles  of  association,  and  shall  have  succession  for  such 
extended  period,  unless  sooner  dissolved  by  the  act  of  share- 
holders owning  two  thirds  of  its  stock,  or  unless  its  franchise 
becomes  forfeited  by  some  violation  of  law,  or  unless  hereafter 
modified  or  repealed. 


1882.]  NEW    ISSUE    OP    CIRCULATING    NOTES.  63 

[The  sections  5133  5130  and  5154  of  the  Revised  Statutes  contain  in 
substance  the  provisions  of  sections  5,  6,  8,  and  44  of  the  Act  of  June  3, 
1804  ;  see  pages  23  and  32.] 

[Sections  2,  3,  and  4  provide  that  the  amended  articles  of  association 
must  receive  the  written  consent  of  shareholders  owning  not  less  than 
two  thirds  of  the  capital  stock,  and  shall  not  be  valid  until  the  Comptroller 
shall  have  certified  his  approval,  after  making  a  special  examination  of 
the  association  to  determine  its  condition ;  and  that  any  association  so 
extending  the  period  of  its  succession  "  shall  continue  to  be  in  all  respects 
the  identical  association  it  was  before  the  extension  of  its  period  of  suc- 
cession." 

Section  5  provides  that  any  shareholder  not  assenting  to  the  amended 
articles  shall  be  entitled  to  receive  the  appraised  value  of  his  shares,  and 
that  his  shares  shall  then  be  sold  at  public  sale.] 

SEC.  6.  That  the  circulating  notes  of  any  association  so  ex- 
tending the  period  of  its  succession  which  shall  have  been  issued 
to  it  prior  to  such  extension  shall  be  redeemed  at  the  Treasury 
of  the  United  States,  as  provided  in  section  three  of  the  act  of 
June  twentieth,  eighteen  hundred  and  seventy-four,  entitled  "  An 
act  fixing  the  amount  of  United  States  notes,  providing  for  re- 
distribution of  national-bank  currency,  and  for  other  purposes," 
and  such  notes  when  redeemed  shall  be  forwarded  to  the  Comp- 
troller of  the  Currency,  and  destroyed  as  now  provided  by  law; 
and  at  the  end  of  three  years  from  the  date  of  the  extension  of 
the  corporate  existence  of  each  bank  the  association  so  extended 
shall  deposit  lawful  money  with  the  Treasurer  of  the  United 
States  sufficient  to  redeem  the  remainder  of  the  circulation 
which  was  outstanding  at  the  date  of  its  extension,  as  provided 
in  sections  fifty-two  hundred  and  twenty-two,  fifty-two  hundred 
and  twenty-four,  and  fifty-two  hundred  and  twenty-five  of  the 
Revised  Statutes  ;  and  any  gain  that  may  arise  from  the  failure 
to  present  such  circulating  notes  for  redemption  shall  inure  to 
the  benefit  of  the  United  States  ;  and  from  time  to  time,  as  such 
notes  are  redeemed  or  lawful  money  deposited  therefor  as  pro- 
vided herein,  new  circulating  notes  shall  be  issued  as  provided 
by  this  act,  bearing  such  devices,  to  be  approved  by  the  Secretary 
of  the  Treasury,  as  shall  make  them  readily  distinguishable  from 
the  circulating  notes  heretofore  issued :  Provided  however,  That 
each  banking  association  which  shall  obtain  the  benefit  of  this 


64  DEPOSIT   AND    WITHDRAWAL    OP    BONDS.  [1882. 

act  shall  reimburse  to  the  Treasury  the  cost  of  preparing  the 
plate  or  plates  for  such  new  circulating  notes  as  shall  be  issued 
to  it. 

[Sections  5222,  5224,  and  5225  of  the  Revised  Statutes  contain  in  sub- 
stance the  provisions  of  sections  42  and  43  of  the  Act  of  June  3,  1864, 
on  page  32.] 

[Section  7  provides  that  any  bank  which  does  not  avail  itself  of  the 
provisions  of  this  act  shall  be  wound  up  as  if  the  shareholders  had  voted 
to  go  into  liquidation,  that  it  shall  within  six  months  deposit  with  the 
Treasurer  of  the  United  States  lawful  money  sufficient  to  redeem  all  its 
outstanding  circulating  notes,  and  shall  thereupon  be  discharged  from  all 
liability  therefor,  and  that  the  bonds  deposited  to  secure  the  same  shall 
then  be  re-assigned  to  it.] 

SEC.  8.  That  national  banks  now  organized  or  hereafter 
organized,  having  a  capital  of  one  hundred  and  fifty  thousand 
dollars,  or  less,  shall  not  be  required  to  keep  on  deposit,  or  de- 
posit with  the  Treasurer  of  the  United  States,  United  States 
bonds  in  excess  of  one  fourth  of  their  capital  stock  as  security 
for  their  circulating  notes  ;  but  such  banks  shall  keep  on  deposit, 
or  deposit  with  the  Treasurer  of  the  United  States,  the  amount 
of  bonds  as  herein  required.  And  such  of  those  banks  having 
on  deposit  bonds  in  excess  of  that  amount  are  authorized  to 
reduce  their  circulation  by  the  deposit  of  lawful  money  as  pro- 
vided by  law ;  provided,  That  the  amount  of  such  circulating 
notes  shall  not  in  any  case  exceed  ninety. per  centum  of  the  par 
value  of  the  bonds  deposited  as  herein  provided.  .  .  . 

SEC.  9.  That  any  national  banking  association  now  organ- 
ized, or  hereafter  organized,  desiring  to  withdraw  its  circulating 
notes,  upon  a  deposit  of  lawful  money  with  the  Treasurer  of  the 
United  States,  as  provided  in  section  four  of  the  act  of  June 
twentieth,  eighteen  hundred  and  seventy-four,  entitled  "  An  act 
fixing  the  amount  of  United  States  notes,  providing  for  a  re- 
distribution of  national-bank  currency,  and  for  other  purposes," 
or  as  provided  in  this  act,  is  authorized  to  deposit  lawful  money 
and  withdraw  a  proportionate  amount  of  the  bonds  held  as  se- 
curity for  its  circulating  notes  in  the  order  of  such  deposits ;  and 
no  national  bank  which  makes  any  deposit  of  lawful  money  in 
order  to  withdraw  its  circulating  notes  shall  be  entitled  to  receive 


1882.]  LIMIT    OF    CIRCULATING   NOTES.  65 

any  increase  of  its  circulation  for  the  period  of  six  months  from 
the  time  it  made  such  deposit  of  lawful  money  for  the  purpose 
aforesaid :  Provided,  That  not  more  than  three  millions  of  dollars 
of  lawful  money  shall  be  deposited  during  any  calendar  month 
for  this  purpose :  And  provided  further,  That  the  provisions 
of  this  section  shall  not  apply  to  bonds  called  for  redemption 
by  the  Secretary  of  the  Treasury,  nor  to  the  withdrawal  of 
circulating  notes  in  consequence  thereof. 

SEC.  10.  That  upon  a  deposit  of  bonds  as  described  by  sec- 
tions fifty-one  hundred  and  fifty-nine  and  fifty-one  hundred  and 
sixty,  except  as  modified  by  section  four  of  an  act  entitled  "  An 
act  fixing  the  amount  of  United  States  notes,  providing  for  a 
redistribution  of  the  national-bank  currency,  and  for  other  pur- 
poses," approved  June  twentieth,  eighteen  hundred  and  seventy- 
four,  and  as  modified  by  section  eight,  of  this  act,  the  association 
making  the  same  shall  be  entitled  to  receive  from  the  Comp- 
troller of  the  Currency  circulating  notes  of  different  denomina- 
tions, in  blank,  registered  and  countersigned  as  provided  by  law, 
equal  in  amount  to  ninety  per  centum  of  the  current  market 
value,  not  exceeding  par,  of  the  United  States  bonds  so  trans- 
ferred and  delivered,  and  at  no  time  shall  the  total  amount  of 
such  notes  issued  to  any  such  association  exceed  ninety  per  cen- 
tum of  the  amount  at  such  time  actually  paid  in  of  its  capital 
stock;  and  the  provisions  of  sections  fifty -one  hundred  and 
seventy-one  and  fifty-one  hundred  and  seventy-six  of  the  Re- 
vised Statutes  are  hereby  repealed. 

[Sections  5159  and  5160  of  the  Revised  Statutes  correspond  to  section 
10  of  the  Bank  Act  of  1864  on  page  24;  and  sections  5171  and  5176  state 
the  limit  of  circulating  notes  to  be  allowed  to  each  bank,  as  given  on 
pages  43  and  47.] 

SEC.  11.  That  the  Secretary  of  the  Treasury  is  hereby 
authorized  to  receive  at  the  Treasury  any  bonds  of  the  United 
States  bearing  three  and  a  half  per  centum  interest,  and  to  issue 
in  exchange  therefor  an  equal  amount  of  registered  bonds  of  the 
United  States  of  the  denominations  of  fifty,  one  hundred,  five 
hundred,  one  thousand,  and  ten  thousand  dollars,  of  such  form 
as  he  may  prescribe,  bearing  interest  at  the  rate  of  three  per 
5 


66       THREE   PER   CENT   BONDS.      GOLD    CERTIFICATES.       [1882. 

centum  per  animm,  payable  quarterly  at  the  Treasury  of  the 
United  States.  Such  bonds  shall  be  exempt  from  all  taxation 
by  or  under  State  authority,  aud  be  payable  at  the  pleasure  of 
the  United  States :  Provided,  That  the  bonds  herein  authorized 
shall  not  be  called  in  and  paid  so  long  as  any  bonds  of  the  United 
States  heretofore  issued  bearing  a  higher  rate  of  interest  than 
three  per  centum,  and  which  shall  be  redeemable  at  the  pleasure 
of  the  United  States,  shall  be  outstanding  and  uncalled.  The 
last  of  the  said  bonds  originally  issued  under  this  act,  and  their 
substitutes,  shall  be  first  called  in,  and  this  order  of  payment 
shall  be  followed  until  all  shall  have  been  paid. 

SEC.  12.  That  the  Secretary  of  the  Treasury  is  authorized 
and  directed  to  receive  deposits  of  gold  coin  with  the  Treasurer 
or  assistant  treasurers  of  the  United  States,  in  sums  not  less 
than  twenty  dollars,  and  to  issue  certificates  therefor  in  denom- 
inations of  not  less  than  twenty  dollars  each,  corresponding  with 
the  denominations  of  United  States  notes.  The  coin  deposited 
for  or  representing,  the  certificates  of  deposits  shall  be  retained 
in  the  Treasury  for  the  payment  of  the  same  on  demand.  Said 
certificates  shall  be  receivable  for  customs,  taxes,  and  all  public 
dues,  and  when  so  received  may  be  reissued ;  aud  such  certifi- 
cates, as  also  silver  certificates,  when  held  by  any  national 
banking  association,  shall  be  counted  as  part  of  its  lawful 
reserve ;  and  no  national  banking  association  shall  be  a  mem- 
ber of  any  clearing-house  in  which  such  certificates  shall  not 
be  receivable  in  the  settlement  of  clearing-house  balances: 
Provided,  That  the  Secretary  of  the  Treasury  shall  suspend  the 
issue  of  such  gold  certificates  whenever  the  amount  of  gold  coin 
and  gold  bullion  in  the  Treasury,  reserved  for  the  redemption  of 
United  States  notes  falls  below  one  hundred  millions  of  dollars  ; 
and  the  provisions  of  section  fifty-two  hundred  and  seven  of  the 
Revised  Statutes  shall  be  applicable  to  the  certificates  herein 
authorized  and  directed  to  be  issued. 

SEC.  14.  That  Congress  may  at  any  time  amend,  alter,  or 
repeal  this  act  and  the  acts  of  which  this  is  amendatory. 

[Approved,  July  12,  1882.    22  Statutes  at  Large,  162.] 

[Section  5207  of  the  Revised  Statutes  is  the  Act  of  February  19,  1869, 
on  page  45.] 


APPENDIX, 

CONTAINING  LAWS  RELATING  TO  COINAGE. 


APPENDIX, 

CONTAINING    LAWS    RELATING  TO   COINAGE. 


L  . . .  April,  1792.  — An  Act  establishing  a  Mint,  and  regulating 
the  Coins  of  the  United  States. 

SEC.  9.  And  be  it  further  enacted,  That  there  shall  be  from 
time  to  time  struck  and  coined  at  the  said  mint,  coins  of  gold, 
silver,  and  copper,  of  the  following  denominations,  values  and 
descriptions,  viz.  EAGLES  —  each  to  be  of  the  value  of  ten 
dollars  or  units,  and  to  contain  two  hundred  and  forty-seven 
grains  and  four-eighths  of  a  grain  of  pure,  or  two  hundred  and 
seventy  grains  of  standard  gold. 

[Half  eagles  and  quarter  eagles  of  corresponding  weights  and  fine- 
ness.] 

DOLLARS  OR  UNITS  —  Each  to  be  of  the  value  of  a  Spanish 
milled  dollar  as  the  same  is  now  current,  and  to  contain  three 
hundred  and  seventy-one  grains  and  four-sixteenth  parts  of  a 
grain  of  pure,  or  four  hundred  and  sixteen  grains  of  standard 
silver. 

[Half  dollars,  quarter  dollars,  dimes,  and  half  dimes  of  corresponding 
weights  and  fineness.] 

SEC.  11.  And  be  it  further  enacted,  That  the  proportional 
value  of  gold  to  silver  in  all  coins  which  shall  by  law  be  current 
as  money  within  the  United  States,  shall  be  as  fifteen  to  one, 
according  to  quantity  in  weight,  of  pure  gold  or  pure  silver ; 
that  is  to  say,  every  fifteen  pounds  weight  of  pure  silver  shall 
be  of  equal  value  in  all  payments,  with  one  pound  weight  of 


iV  APPENDIX,  [1792. 

pure  gold,  and  so  in  proportion  as  to  any  greater  or  less  quanti- 
ties of  the  respective  metals. 

SEC.  14.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  any  person  or  persons  to  bring  to  the  said  mint  gold  and  sil- 
ver bullion,  in  order  to  their  being  coined ;  and  that  the  bullion 
BO  brought  shall  be  there  assayed  and  coined  as  speedily  as  may 
be  after  the  receipt  thereof,  and  that  free  of  expense  to  the  per- 
son or  persons  by  whom  the  same  shall  have  been  brought.  And 
as  soon  as  the  said  bullion  shall  have  been  coined,  the  person  or 
persons  by  whom  the  same  shall  have  been  delivered,  shall  upon 
demand  receive  in  lieu  thereof  coins  of  the  same  species  of  bullion 
which  shall  have  been  so  delivered,  weight  for  weight,  of  the 
pure  gold  or  pure  silver  therein  contained :  Provided  neverthe- 
less, That  it  shall  be  at  the  mutual  option  of  the  party  or  parties 
bringing  such  bullion,  and  of  the  director  of  the  said  mint,  to 
make  an  immediate  exchange  of  coins  for  standard  bullion,  with 
a  deduction  of  one-half  per  cent,  from  the  weight  of  pure  gold, 
or  pure  silver  contained  in  the  said  bullion,  as  an  indemnifica- 
tion to  the  mint  for  the  time  which  will  necessarily  be  required 
for  coining  the  said  bullion,  and  for  the  advance  which  shall  have 
been  so  made  in  coins. 

SEC.  16.  And  be  it  further  enacted,  That  all  the  gold  and 
silver  coins  which  shall  have  been  struck  at,  and  issued  from  the 
said  mint,  shall  be  a  lawful  tender  in  all  payments  whatsoever, 
those  of  full  weight  according  to  the  respective  values  herein 
before  declared,  and  those  of  less  than  full  weight  at  values  pro- 
portional to  their  respective  weights. 

[Approved,  April  2,  1792.     1  Statutes  at  Large.  246.] 

n. .  .  .  June,  1834.  —  An  Act  concerning  the  gold  coins  of  the 
United  States,  and  for  other  purposes. 

Be  it  enacted,  .  .  .  That  the  gold  coins  of  the  United  States 
shall  contain  the  following  quantities  of  metal,  that  is  to  say : 
each  eagle  shall  contain  two  hundred  and  thirty-two  grains  of 
pure  gold,  and  two  hundred  and  fifty-eight  grains  of  standard 
gold  ;  each  half  eagle  one  hundred  and  sixteen  grains  of  pure 
gold,  and  one  hundred  and  twenty-nine  grains  of  standard  gold ; 


1834.]        CONTAINING    LAWS    RELATING    TO    COINAGE.  V 

each  quarter  eagle  shall  contain  fifty-eight  grains  of  pure  gold, 
and  sixty-four  and  a  half  grains  of  standard  gold ;  every  such 
eagle  shall  be  of  the  value  of  ten  dollars  ;  every  such  half  eagle 
shall  be  of  the  value  of  five  dollars ;  and  every  such  quarter 
eagle  shall  be  of  the  value  of  two  dollars  and  fifty  cents  ;  and 
the  said  gold  coins  shall  be  receivable  in  all  payments,  when  of 
full  weight,  according  to  their  respective  values  ;  and  when  of 
less  than  full  weight,  at  less  values,  proportioned  to  their  respec- 
tive actual  weights. 

SEC.  2.  And  be  it  farther  enacted,  That  all  standard  gold  or 
silver  deposited  for  coinage  after  the  thirty-first  of  July  next, 
shall  be  paid  for  in  coin  under  the  direction  of  the  Secretary  of 
the  Treasury,  within  five  days  from  the  making  of  such  deposit, 
deducting  from  the  amount  of  said  deposit  of  gold  and  silver 
one-half  of  one  per  centum  :  Provided,  That  no  deduction  shall 
be  made  unless  said  advance  be  required  by  such  depositor  within 
forty  days. 

SEC.  3.  And  be  it  further  enacted,  That  all  gold  coins  of  the 
United  States,  minted  anterior  to  the  thirty-first  day  of  July 
next,  shall  be  receivable  in  all  payments  at  the  rate  of  ninety- 
four  and  eight-tenths  of  a  cent  per  pennyweight. 

[Approved,  June  28,  1834.    4  Statutes  at  Large,  699.] 

IU.  .  .  .  January,  1837.  —  An  Act  supplementary  to  the  act  enti- 
tled "  An  act  establishing  a  mint,  and  regulating  the  coins 
of  the  United  States" 

SEC.  8.  And  be  it  further  enacted,  That  the  standard  for  both 
gold  and  silver  coins  of  the  United  States  shall  hereafter  be 
such,  that  of  one  thousand  parts  by  weight,  nine  hundred  shall 
be  of  pure  metal,  and  one  hundred  of  alloy ;  and  the  alloy  of 
the  silver  coins  shall  be  of  copper ;  and  the  alloy  of  the  gold 
coins  shall  be  of  copper  and  silver,  provided  that  the  silver  do 
not  exceed  one-half  of  the  whole  alloy. 

SEC.  9.  And  be  it  further  enacted,  That  of  the  silver  coins, 
the  dollar  shall  be  of  the  weight  of  four  hundred  and  twelve 
and  one-half  grains  ;  the  half  dollar  of  the  weight  of  two  hun- 
dred and  six  and  one-fourth  grains ;  the  quarter  dollar  of  the 


vi  APPENDIX,  [1837. 

weight  of  one  hundred  and  three  and  one-eighth  grains;  the 
dime,  or  tenth  part  of  a  dollar,  of  the  weight  of  forty-one  and 
a  quarter  grains ;  and  the  half  dime,  or  twentieth  part  of  a  dol- 
lar, of  the  weight  of  twenty  grains,  and  five-eighths  of  a  grain. 
And  that  dollars,  half  dollars,  and  quarter  dollars,  dimes,  and 
half  dimes,  shall  be  legal  tenders  of  payment,  according  to  their 
nominal  value,  for  any  sums  whatever. 

SEC.  10.  And  be  it  further  enacted,  That  of  the  gold  coins, 
the  weight  of  the  eagle  shall  be  two  hundred  and  fifty-eight 
grains  ;  that  of  the  half  eagle  one  hundred  and  twenty-nine 
grains ;  and  that  of  the  quarter  eagle  sixty-four  and  one-half 
grains.  And  that  for  all  sums  whatever,  the  eagle  shall  be  a 
legal  tender  of  payment  for  ten  dollars ;  the  half  eagle  for  five 
dollars ;  and  the  quarter  eagle  for  two  and  a  half  dollars. 

SEC.  11.  And  be  it  further  enacted,  That  the  silver  coins 
heretofore  issued  at  the  mint  of  the  United  States,  and  the  gold 
coins  issued  since  the  thirty-first  day  of  July,  one  thousand  eight 
hundred  and  thirty-four,  shall  continue  to  be  legal  tenders  of 
payment  for  their  nominal  values,  on  the  same  terms  as  if  they 
were  of  the  coinage  provided  for  by  this  act. 

[Approved,  January  18,  1837.    5  Statutes  at  Large,  136.] 

IV March,  1849.  —  An  Act  to  authorize  the  Coinage  of  Gold 

Dollars  and  Double  Eagles. 

[This  act  authorizes  the  coinage  of  gold  dollars  and  double  eagles, 
"  conformably  in  all  respects  to  the  standard  for  gold  coins  now  estab- 
lished by  law,"  and  to  be  a  legal  tender  in  payment  for  all  sums.] 

[Approved,  March  3,  1849.     9  Statutes  at  Large,  337.] 

V. ...  February,  1853.  —  An  Act  amendatory  of  Existing  Laics 
relative  to  the  Half  Dollar,  Quarter  Dollar,  Dime,  and  Half 
Dime. 

Be  it  enacted,  .  .  .  That  from  and  after  the  first  day  of  June, 
eighteen  hundred  and  fifty-three,  the  weight  of  the  half  dollar  or 
piece  of  fifty  cents  shall  be  one  hundred  and  ninety-two  grains, 
and  the  quarter  dollar,  dime,  and  half  dime,  shall  be,  respec- 
tively, one-half,  one-fifth,  and  one-tenth  of  the  weight  of  said 
half  dollar. 


1853.]       CONTAINING    LAWS    RELATING   TO    COINAGE.  vii 

SEC.  2.  And  be  it  further  enacted,  That  the  silver  coins  issued 
in  conformity  with  the  above  section,  shall  be  legal  tenders  in 
payment  of  debts  for  all  sums  not  exceeding  five  dollars. 

SEC.  3.  And  be  it  further  enacted,  That  in  order  to  procure 
bullion  for  the  requisite  coinage  of  the  subdivisions  of  the  dollar 
authorized  by  this  act,  the  Treasurer  of  the  Mint  shall,  with  the 
approval  of  the  Director,  purchase  such  bullion  with  the  bullion 
fund  of  the  mint.  .  .  . 

SEC.  4.  And  be  it  further  enacted,  That  such  coins  shall  be 
paid  out  at  the  mint,  in  exchange  for  gold  coins  at  par,  in  sums 
not  less  than  one  hundred  dollars  ;  and  it  shall  be  lawful,  also,  to 
transmit  parcels  of  the  same  from  time  to  time  to  the  assistant 
treasurers,  depositaries,  and  other  officers  of  the  United  States, 
under  general  regulations,  proposed  by  the  Director  of  the  Mint, 
and  approved  by  the  Secretary  of  the  Treasury :  Provided,  how- 
ever, That  the  amount  coined  into  quarter  dollars,  dimes,  and 
half  dimes,  shall  be  regulated  by  the  Secretary  of  the  Treasury. 

SEC.  5.  And  be  it  further  enacted,  That  no  deposits  for  coinage 
into  the  half  dollar,  quarter  dollar,  dime,  and  half  dime,  shall  here- 
after be  received,  other  than  those  made  by  the  Treasurer  of  the 
Mint,  as  herein  authorized,  and  upon  account  of  the  United  States. 

[Section  6  provides  that  when  gold  or  silver  is  deposited  for  coinage, 
there  shall  be  a  charge  to  the  depositor,  in  addition  to  the  charge  for 
refining  or  parting  the  metals,  of  one  half  of  one  per  centum,  this  provi- 
sion not  applying  to  silver  coined  into  the  subdivisions  of  the  dollar.] 

SEC.  7.  And  be  it  further  enacted,  That  from  time  to  time 
there  shall  be  struck  and  coined  at  the  Mint  of  the  United  States, 
and  the  branches  thereof,  conformably  in  all  respects  to  law,  and 
conformably  in  all  respects  to  the  standard  of  gold  coins  now 
established  by  law,  a  coin  of  gold  of  the  value  of  three  dollars,  or 
units.  .  .  . 

[Approved,  February  21,  1853.     10  Statutes  at  Large,  160.] 

VL  .  . .  February,  1873.  —  An  Act  revising  and  amending  the 
Laws  relative  to  the  Mints,  Assay-offices,  and  Coinage  of  the 
United  States. 

SEC.  14.  That  the  gold  coins  of  the  United  States  shall  be  a 
one-dollar  piece,  which,  at  the  standard  weight  of  twenty-five 


Viii  APPENDIX,  [1 878. 

and  eight-tenths  grains,  shall  be  the  unit  of  value;  a  quarter- 
eagle,  or  two-and-a-half  dollar  piece;  a  three-dollar  piece;  a 
half-eagle,  or  five-dollar  piece ;  an  eagle  or  ten-dollar  piece ;  and 
a  double  eagle,  or  twenty-dollar  piece.  And  the  standard  weight 
of  the  gold  dollar  shall  be  twenty-five  and  eight-tenths  grains ; 
of  the  quarter-eagle,  or  two-and-a-half  dollar  piece,  sixty-four 
and  a  half  grains ;  of  the  three-dollar  piece,  seventy-seven  and 
four-tenths  grains;  of  the  half-eagle,  or  five-dollar  piece,  one 
hundred  and  twenty -nine  grains;  of  the  eagle,  or  ten-dollar 
piece,  two  hundred  and  fifty-eight  grains ;  of  the  double  eagle, 
or  twenty-dollar  piece,  five  hundred  and  sixteen  grains ;  which 
coins  shall  be  a  legal  tender  in  all  payments  at  their  nominal 
value  when  not  below  the  standard  weight  and  limit  of  tolerance 
provided  in  this  act  for  the  single  piece,  and,  when  reduced  in 
weight,  below  said  standard  and  tolerance,  shall  be  a  legal  tender 
at  valuation  in  proportion  to  their  actual  weight ;  and  any  gold 
coin  of  the  United  States,  if  reduced  in  weight  by  natural  abra- 
sion not  more  than  one-half  of  one  per  centum  below  the  standard 
weight  prescribed  by  law,  after  a  circulation  of  twenty  years,  as 
shown  by  its  date  of  coinage,  and  at  a  ratable  proportion  for  any 
period  less  than  twenty  years,  shall  be  received  at  their  nominal 
value  by  the  United  States  treasury  and  its  offices.  .  .  . 

SEC.  15.  That  the  silver  coins  of  the  United  States  shall  be  a 
trade-dollar,  a  half-dollar,  or  fifty  cent  piece,  a  quarter-dollar,  or 
twenty-five  cent  piece,  a  dime  or  ten-cent  piece ;  and  the  weight  of 
the  trade-dollar  shall  be  four  hundred  and  twenty  grains  troy ;  the 
weight  of  the  half-dollar  shall  be  twelve  grams  (grammes)  and 
one-half  of  a  gram,  (gramme)  ;  the  quarter-dollar  and  the  dime 
shall  be  respectively,  one-half  and  one-fifth  of  the  weight  of  said 
half-dollar ;  and  said  coins  shall  be  a  legal  tender  at  their  nomi- 
nal value  for  any  amount  not  exceeding  five  dollars  in  any  one 
payment. 

SEC.  17.  That  no  coins,  either  of  gold,  silver,  or  minor  coinage, 
shall  hereafter  be  issued  from  the  mint  other  than  those  of  the 
denominations,  standards,  and  weights  herein  set  forth. 

SEC.  25.  That  the  charge  for  converting  standard  gold  bullion 
into  coin  shall  be  one-fifth  of  one  per  centum ;  and  the  charges 
for  converting  standard  silver  into  trade-dollars,  for  melting  and 


1874.J       CONTAINING   LAWS    RELATING    TO    COINAGE.  ix 

refining  when  bullion  is  below  standard,  for  toughening  when 
metals  are  contained  in  it  which  render  it  unfit  for  coinage,  for 
copper  u?ed  for  alloy  when  the  bullion  is  above  standard,  for 
separating  the  gold  and  silver  when  these  metals  exist  together 
in  the  bullion,  and  for  the  preparation  of  bars,  shall  be  fixed,  from 
time  to  time,  by  the  director,  with  the  concurrence  of  the  Secre- 
tary of  the  Treasury,  so  as  to  equal  but  not  exceed,  in  their  judg- 
ment, the  actual  average  cost  to  each  mint  and  assay-office  of  the 
material,  labor,  wastage,  and  use  of  machinery  employed  in  each 
of  the  cases  aforementioned. 

[Approved,  February  12,  1873.     17  Statutes  at  Large,  424.] 

NOTE.  —  By  an  Act  approved  March  3,  1875,  the  coinage  of  a  twenty 
cent  piece,  in  conformity  with  the  provisions  made  as  to  other  subsidiary 
silver  coins,  was  authorized.  See  18  Statutes  at  Large,  part  3,  478 

This  act  was  repealed  May  2,  1878. 

VH June,  1874.  —  Revised  Statutes  of  the  United  States  ; 

Title  xxxix.,  Legal  Tender. 

SEC.  3584.  No  foreign  gold  or  silver  coins  shall  be  a  legal 
tender  in  payment  of  debts. 

Sice.  3585.  The  gold  coins  of  the  United  States  shall  be  a 
legal  tender  in  all  payments  at  their  nominal  value  when  not 
below  the  standard  weight  and  limit  of  tolerance  provided  by 
law  for  the  single  piece,  and,  when  reduced  in  weight  below  such 
standard  and  tolerance,  shall  be  a  legal  tender  at  valuation  in 
proportion  to  their  actual  weight. 

SKC.  3586.  The  silver  coins  of  the  United  States  shall  be  a 
legal  tender  at  their  nominal  value  for  any  amount  not  exceeding 
five  dollars  in  any  one  payment. 

SEC.  3587.  The  minor  coins  of  the  United  States  shall  be  a 
legal  tender,  at  their  nominal  value  for  any  amount  not  exceeding 
twenty-five  cents  in  any  one  payment. 

[Sections  3588,  3589,  3590,  contain  the  provisions  to  be  found  in  pre- 
vious acts,  making  United  States  notes,  demand  notes,  and  Treasury 
notes,  respectively,  legal  tender.] 

[Approved,  June  22,  1874.    Revised  Statutes,  712.] 


x  APPENDIX,  [1876. 

VUL  . . .  January,  1875.  —  An  Act  to  provide  for  the  resump> 

tion  of  specie  payments. 

[For  sections  1  and  2  of  this  act,  providing  for  the  coinage  of  small 
silver  coins  and  their  issue  in  redemption  of  fractional  currency,  and  for 
the  discontinuance  of  the  charge  made  for  coining  gold  bullion,  see  ante, 
p.  57.] 

[Approved,  January  14,  1875.    18  Statutes  at  Large,  part  3,  296.] 

IX. . . .  July,  1876.  —  Joint  Resolution  for  the  Issue  of  silver  coin. 

Resolved,  .  .  .  That  the  Secretary  of  the  Treasury,  under  such 
limits  and  regulations  as  will  best  secure  a  just  and  fair  distribu- 
tion of  the  same  through  the  country,  may  issue  the  silver  coin 
at  any  time  in  the  Treasury  to  an  amount  not  exceeding  ten 
million  dollars,  in  exchange  for  an  equal  amount  of  legal-tender 
notes ;  and  the  notes  so  received  in  exchange  shall  be  kept  as  a 
special  fund  separate  and  apart  from  all  other  money  in  the 
Treasury,  and  be  reissued  only  upon  the  retirement  and  destruc- 
tion of  a  like  sum  of  fractional  currency  received  at  the  Treasury 
in  payment  of  dues  to  the  United  States ;  and  said  fractional  cur- 
rency, when  so  substituted,  shall  be  destroyed  and  held  as  part 
of  the  sinking  fund,  as  provided  in  the  act  approved  April  seven- 
teen, eighteen  hundred  and  seventy-six. 

SEC.  2.  That  the  trade  dollar  shall  not  hereafter  be  a  legal 
tender,  and  the  Secretary  of  the  Treasury  is  hereby  authorized 
to  limit  from  time  to  time,  the  coinage  thereof  to  such  an  amount 
as  he  may  deem  sufficient  to  meet  the  export  demand  for  the 
same. 

SEC.  3.  That  in  addition  to  the  amount  of  subsidiary  silver 
coin  authorized  by  law  to  be  issued  in  redemption  of  the  frac- 
tional currency  it  shall  be  lawful  to  manufacture  at  the  several 
mints,  and  issue  through  the  Treasury  and  its  several  offices, 
such  coin,  to  an  amount,  that,  including  the  amount  of  subsidiary 
silver  coin  and  of  fractional  currency  outstanding,  shall,  in  the 
aggregate,  not  exceed,  at  any  time,  fifty  million  dollars. 

[Section  4  authorizes  the  Secretary  of  the  Treasury  to  purchase  bul- 
lion for  the  purposes  of  this  resolution,  and  requires  any  gain  arising  from 
the  coinage  thereof  to  be  paid  into  the  Treasury.] 

[Approved,  July  22,  1876.    19  Statutes  at  Large,  215.] 


1878.]          CONTAINING   LAWS    RELATING   TO    COINAGE.  xi 

X.  ...  February,  1878.  —  An  Act  to  authorize  the  coinage  of 
the  standard  silver  dollar^  and  to  restore  its  legal-tender 
character. 

Be  it  enacted,  .  .  .  That  there  shall  be  coined,  at  the  several 
mints  of  the  United  States,  silver  dollars  of  the  weight  of  four 
hundred  and  twelve  and  a  half  grains  Troy  of  standard  silver, 
as  provided  in  the  act  of  January  eighteenth,  eighteen  hundred 
thirty-seven,  on  which  shall  be  the  devices  and  superscrip- 
tions provided  by  said  act ;  which  coins  together  with  all  silver 
dollars  heretofore  coined  by  the  United  States,  of  like  weight 
and  fineness,  shall  be  a  legal  tender,  at  their  nominal  value,  for 
all  debts  and  dues  public  and  private,  except  where  otherwise 
.expressly  stipulated  in  the  contract.  And  the  Secretary  of  the 
Treasury  is  authorized  and  directed  to  purchase,  from  time  to 
time,  silver  bullion,  at  the  market  price  thereof,  not  less  than  two 
million  dollars  worth  per  month,  nor  more  than  four  million 
dollars  worth  per  month,  and  cause  the  same  to  be  coined 
monthly,  as  fast  as  so  purchased,  into  such  dollars ;  and  a  sum 
sufficient  to  carry  out  the  foregoing  provision  of  this  act  is  hereby 
appropriated  out  of  any  money  in  the  Treasury  not  otherwise 
appropriated.  And  any  gain  or  seigniorage  arising  from  this 
coinage  shall  be  accounted  for  and  paid  into  the  Treasury,  as 
provided  under  existing  laws  relative  to  the  subsidiary  coinage  : 
Provided,  That  the  amount  of  money  at  any  one  time  invested 
in  such  silver  bullion,  exclusive  of  such  resulting  coin,  shall  not 
exceed  five  million  dollars  :  And  provided  further,  That  nothing 
in  this  act  shall  be  construed  to  authorize  the  payment  in  silver 
of  certificates  of  deposit  issued  under  the  provisions  of  section 
two  hundred  and  fifty-four  of  the  Revised  Statutes. 

[The  provisions  of  section  254  of  the  Revised  Statutes  are  contained  in 
section  5  of  the  act  of  March  3,  1863,  on  page  21.] 

SEC.  2.  That  immediately  after  the  passage  of  this  act,  the 
President  shall  invite  the  governments  of  the  countries  com- 
posing the  Latin  Union,  so  called,  and  of  such  other  European 
nations  as  he  may  deem  advisable,  to  join  the  United  States  in 
a  conference  to  adopt  a  common  ratio  between  gold  and  silver, 


xii  APPENDIX,  [1878. 

for  the  purpose  of  establishing,  internationally,  the  use  of  bime- 
tallic money,  and  securing  fixity  of  relative  value  between  those 
metals ;  such  conference  to  be  held  at  such  place,  in  Europe  or 
in  the  United  States,  at  such  time  within  six  months,  as  may  be 
mutually  agreed  upon  by  the  executives  of  the  governments 
joining  in  the  same,  whenever  the  governments  so  invited,  or 
any  three  of  them,  shall  have  signified  their  willingness  to  unite 
in  the  same. 

The  President  shall,  by  and  with  the  advice  and  consent  of 
the  Senate,  appoint  three  commissioners,  who  shall  attend  such 
conference  on  behalf  of  the  United  States,  and  shall  report  the 
doings  thereof  to  the  President,  who  shall  transmit  the  same  to 
Congress. 

Said  commissioners  shall  each  receive  the  sum  of  two  thousand 
five  hundred  dollars  and  their  reasonable  expenses,  to  be  approved 
by  the  Secretary  of  State ;  and  the  amount  necessary  to  pay  such 
compensation  and  expenses  is  hereby  appropriated  out  of  any 
money  in  the  Treasury  not  otherwise  appropriated. 

SEC.  3.  That  any  holder  of  the  coin  authorized  by  this  act 
may  deposit  the  same  with  the  Treasurer  or  any  assistant 
treasurer  of  the  United  States,  in  sums  not  less  than  ten  dol- 
lars, and  receive  therefor  certificates  of  not  less  than  ten  dollars 
each,  corresponding  with  the  denominations  of  the  United  States 
notes.  The  coin  deposited  for  or  representing  the  certificates 
shall  be  retained  in  the  Treasury  for  the  payment  of  the  same 
on  demand.  Said  certificates  shall  be  receivable  for  customs, 
taxes,  and  all  public  dues,  and,  when  so  received,  may  be  reis- 
sued. 

SEC.  4.  All  acts  and  parts  of  acts  inconsistent  with  the  pro- 
visions of  this  act  are  hereby  repealed. 

NOTE.  —  The  above  act  having  been  returned  by  the  President  of  the 
United  States,  with  his  objections,  to  the  House  of  Representatives,  Feb- 
ruary 28,  1878,  was  passed  by-  both  Houses,  and  became  a  law  on  the 
same  day. 

[20  Statutes  at  Large,  25.] 


1882.]       CONTAINING    LAWS    RELATING    TO    COINAGE. 


XI.  .  .  .  May,    1882.  —  An   Act   to   authorize   the   receipt   of 
United  States  gold  coin  in  exchange  for  gold  bars. 

Be  it  enacted,  .  .  .  That  the  superintendents  of  the  coinage 
mints,  and  of  the  United  States  assay-office  at  New  York,  are 
hereby  authorized  to  receive  United  States  gold  coin  from  any 
holder  thereof  in  sums  not  less  than  five  thousand  dollars,  and 
to  pay  and  deliver  in  exchange  therefor  gold  bars  in  value 
equalling  such  coin  so  received. 

[Approved,  May  26,  18B2.    22  Statutes  at  Large,  97.] 


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A     OOP  019  080 


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